Kia India today announced that it will extend the complete benefit of the Goods and Services Tax (GST) rate restructuring on its passenger vehicles (PVs) to customers, slashing the prices by up to Rs 4.49 lakh.
The Indian arm of the Korean carmaker sells internal combustion engine (ICE) PVs like the Sonet, Syros, Seltos, Carens, Carens Clavis and Carnival. The reduced prices will become effective from September 22.
The lowest price cut of up to Rs 48,513 will be on the Carens. The new Carens Clavis will witness a price drop of up to Rs 78,674. The Seltos price will go down by up to Rs 75,372. While the Sonet will become cheaper by up to Rs 1.64 lakh, the Syros price will see a decline of up to Rs 1.86 lakh. The maximum price drop will be on the Carnival at Rs 4.49 lakh.
For reference, the cut will be on the ex-showroom price.
KIA CAR PRICE REDUCTION
| Model | Price Reduction |
| Kia Carens | Up to Rs 48,513 |
| Kia Carens Clavis | Up to Rs 78,674 |
| Kia Seltos | Up to Rs 75,372 |
| Kia Sonet | Up to Rs 1.64 lakh |
| Kia Syros | Up to Rs 1.86 lakh |
| Kia Carnival | Up to Rs 4.49 lakh |
With GST rate rationalisation, all ICE and hybrid cars, from SUVs to MPVs, sedans and hatchbacks, are now based in the 18% slab and the 40% slab. However, there is no compensation cess now.
Earlier, these cars were under the 28% GST slab. On top of it, there was a compensation cess in the range of 1%-22%. This would take the total tax to 29%-50%, depending on the vehicle length, engine capacity and body style.
But now, the total tax is either 18% or 40%, resulting in a price reduction.
All kinds of electric vehicles (EVs), like earlier, are in the 5% GST slab, while the hydrogen fuel cell vehicles (FCEVs) have been moved to the 5% GST slab after the removal of the 12% GST slab.
Apart from Kia, carmakers such as Hyundai Motor India, Tata Motors, Mahindra & Mahindra, Toyota Kirloskar Motor, JSW MG Motor India, Skoda Auto India, Renault India and Nissan Motor India have already announced benefits on their entire PV range under the GST 2.0 regime. Among the luxury carmakers, Mercedes-Benz India, BMW Group India and Audi India have followed suit.
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