GaadiWaadi –
Prices of diesel compact SUVs have been reduced big time as Tata Nexon, Mahindra XUV 3XO, Hyundai Venue, Kia Sonet and Kia Syros become more attractive
The GST reforms could not have come at a better time as buyers are being led into tempting deals courtesy of the relaxation in tax slabs. The GST 2.0 restructuring has resulted in huge price reductions for passenger vehicles across different segments and it will certainly help pump up the volumes in the struggling entry-level hatchback space. For first-time buyers, this means cars that were earlier out of budget are now much more attainable.
Small petrol cars under 4 metres with engines below 1.2 litres are now taxed at 18 per cent instead of the earlier 29 per cent – directly benefitting hatchbacks and compact sedans. Similarly, small diesel cars under 4 metres with engines below 1.5 litres see taxes slashed from 31 per cent to 18 per cent. The revisions have given manufacturers room to cut prices significantly – allowing customers to save more.
However, observing the official price drops announced by the brands, and the way in which the GST 2.0 slab has been implemented, it is apparent that the diesel compact SUVs have witnessed the biggest reductions. Currently, Hyundai, Mahindra, Tata and Kia are the only automakers selling diesel engines in their compact SUV lineup and their sales numbers are set to see a major boost.
Also Read: GST 2.0 Effect: Kia Announces Price Cuts Of Up To Rs. 4.5 Lakh
The new tax benefits, complemented by festive offers, are expected to generate huge demand. Within Tata Motors’ lineup, the Nexon has seen a price decline of up to Rs. 1.55 lakh owing to GST 2.0 while the prices of the Mahindra XUV 3XO diesel have been reduced by up to Rs. 1.56 lakh. Kia India’s Sonet prices are down by Rs. 1.64 lakh while the recently launched Syros is cheaper by Rs. 1.86 lakh.
The price cuts make compact SUVs a far more attractive option for buyers who might have otherwise considered a petrol model or even a smaller hatchback. Both the Sonet and Syros are powered by a 1.5-litre four-cylinder turbo diesel engine. The same powertrain can also be found in the Hyundai Venue which has endured a price decline of up to Rs. 1.23 lakh.
Also Read: GST 2.0: MG Motor India Announces Price Reduction By Up To Rs. 3.04 Lakh
With nearly all diesel compact SUVs now offered at lower price points, the segment could see one of the sharpest uptakes in recent years, especially in semi-urban and rural markets where diesel demand is traditionally higher. In comparison, most of these models are now priced more or less similar to what their petrol-spec counterparts cost previously.
This is a game changer for customers who preferred diesel engines for their torque and efficiency but were earlier priced out. With petrol and diesel models closer in cost, buyers now have greater flexibility to choose powertrains based on preference rather than budget. With the festive season well and truly on, the benefits galore could only get better as discounts will also be offered. Dealers are likely to extend attractive finance schemes, exchange bonuses and loyalty offers on top of the GST-led price drops.
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