JLR joins other luxury car makers, cuts prices ahead of GST

Tata Motors-owned luxury car maker Jaguar Land Rover has reduced prices of some models by up to Rs10.9 lakh with immediate effect to pass on benefits of new tax rates under the Goods & Service Tax regime that is expected to take effect in July.

The estimated price reduction post GST, if it comes into effect from 1 July 2017, will be up to 12 per cent depending on the model and will vary from state to state, JLR India said in a statement.

Such price reduction-linked benefits will be passed on to the customers with immediate effect on select stock of vehicles, it added.

The benefits will be in the range of Rs2 lakh to Rs5.7 lakh on Jaguar XE sedan and Rs4 lakh to Rs10.9 lakh on Jaguar XJ. On Land Rover models Discovery Sport and Range Rover Evoque, the benefits will range from Rs3.3 lakh to Rs7.5 lakh, the company said. These models are currently priced between Rs37.25 lakh and Rs1.02 crore (ex-showroom Delhi).

"Implementation of GST is a historical moment for India, which will not only benefit consumers but is also expected to make the whole tax regime simpler and more transparent," JLR India president and managing director Rohit Suri said.

The company has proactively passed on benefits linked to the expected price reduction to customers with immediate effect but it will be valid only for June in case GST isn't implemented by 1 July, he added.

JLR currently produces five models in India – the Jaguar XE, XF and XJ and Land Rover Discovery Sport and Range Rover Evoque.

On Tuesday, Ford India announced discounts of up to Rs30,000 on its compact SUV EcoSport, sedan Aspire and hatchback Figo. German luxury carmakers Mercedes Benz, Audi and BMW have already announced benefits, price reduction and lower interest rates for their products.

Large cars are expected to become cheaper due to lower tax incidence under GST than under the current system. Under the GST regime, cars will attract the top rate of 28 per cent with additional cess in the range of 1 to 15 per cent.

While small petrol cars with engine capacity of less than 1,200 cc will attract 1 per cent cess, those with a diesel engine of less than 1,500 cc will attract 3 per cent cess. Cars with engine larger than 1,500 cc and SUVs with length of more than 4 metres and engine larger than 1,500 cc will attract cess of 15 per cent.