Renault India today announced that it has passed on the GST 2.0 benefit to the customers, slashing the prices of its three models -- Kwid, Triber and Kiger -- by up to Rs 96,395.
With the price cut, the Kwid now starts at Rs 4,29,900 (ex-showroom), the new Triber at Rs 5,76,300 (ex-showroom) and the new Kiger at Rs 5,76,300 (ex-showroom).
The revised pricing will be effective on all deliveries made on or after September 22, the first day of the nine-day Navaratri festival. However, customers can book any Renault car at the new prices immediately across all dealerships.
"Passing on the full GST 2.0 benefit is a reflection of our unwavering commitment to our customers. We believe this timely initiative will not only make our cars more accessible but also energise demand during the festive season. It is a step forward in our mission to deliver innovation, value, and trust to every Indian household," said Venkatram Mamillapalle, Managing Director, Renault India.
Under the GST 2.0 rules, all internal combustion engine (ICE) cars -- those running on petrol, diesel, or CNG -- now fall under two tax slabs, 18% and 40%. Smaller cars such as hatchbacks, compact sedans, and compact SUVs are in the 18% category, while mid-size cars, larger models, and luxury vehicles are taxed at 40%.
Renault has gained from this change, as all its cars now fall in the 18% slab, leading to price cuts across its range.
Previously, ICE cars attracted 28% GST along with an additional compensation cess ranging from 1% to 22%, depending on the car’s size and engine capacity. Small petrol hatchbacks faced a lower cess, but SUVs and luxury cars paid the highest. This pushed the total tax on some models, especially luxury cars, to as high as 50%. As a result, many cars in India ended up costlier than their global prices.
Under GST 2.0, the cess has been removed. Cars are now taxed at a single clear rate, either 18% or 40%.
For electric vehicles (EVs), the GST rate remains unchanged at 5%. Hydrogen fuel cell vehicles (FCEVs) have also been moved into the 5% slab, down from the earlier 12%.
Tata Motors has also announced a price cut of up to Rs 1,55,000 on its passenger vehicle (PV) range as part of the GST 2.0 regime.
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