GST 2.0 effect: Looking for an affordable sedan? Dzire, Amaze, Virtus, Verna, City prices slashed by up to Rs 95,500

India's largest-selling sedan, the Dzire, will see a price cut of up to Rs 87,700.

Are you still in the market looking for an affordable sedan? If yes, there is some good news for you as the Goods and Services Tax (GST) rate rationalisation has resulted in the mass-market sedans becoming cheaper by up to Rs 95,500.

Among the mass-market sedans sold in India are the Maruti Suzuki Dzire, Honda Amaze, Hyundai Aura, Tata Tigor, Volkswagen Virtus, Skoda Slavia, Honda City and Hyundai Verna.

With GST restructuring, models like the Dzire, Amaze, Aura and Tigor have come under the 18% slab. They earlier attracted a total tax of 29% to 31% (28% GST and 1% to 3% compensation cess).

The relatively bigger models like the Virtus, Slavia, City and Verna are now in the new 40% slab. Previously, the total tax on them was from 43% to 45% (28% GST and 15% to 17% compensation cess).

Just for reference, there is no compensation cess on automobiles in the GST 2.0 regime.

While the carmakers have already announced price cuts across their entire portfolio, the new prices will become effective on September 22, when the fresh GST structure becomes operational. It also coincides with the first day of the nine-day Navaratri festival.

GST PRICE CUT ON SEDANS

The Virtus, which is currently the best-selling mid-size sedan in India, will become cheaper by up to Rs 66,900. The price of the Slavia will go down by up to Rs 63,207. The City will witness a price drop of Rs 57,500 and the Verna's price will be slashed by up to Rs 60,640.

SEDANS ON DECLINE

Amid low volumes, carmakers are also shying away from introducing new sedan nameplates in the market and concentrating mainly on SUVs. Last year, Maruti Suzuki India launched the new-generation Dzire, while Honda Cars India introduced the new-generation Amaze.