Hyundai cars to be cheaper in Tamil Nadu

04 January 2007

Chennai: Hyundai Motor India has said it would pass on the benefit of savings from VAT to its customers. Implementation of the VAT regime, which came into effect in Tamil Nadu on Monday, results in a flat levy of 12.5 per cent on all automobiles, replacing the multiple tax regime involving 12.6 per cent local sales tax and 1 per cent turnover tax in addition to the 1 per cent central sales tax.

However, while VAT replaces the local ST and turnover tax, the central sales tax will continue to be applicable as before.

In Tamil Nadu Hyundai's Santro XL will now cost Rs 1,816 less, at Rs3,45,790 instead of the earlier Rs3,47,606; the Getz GLS will cost Rs2,828 less at Rs4,61,544 against the earlier Rs4,64,372; Accent GLE Rs4,040 less at Rs5,29,530; Verna CRDi Rs8,068 less at Rs9,80,719 and Sonata MT Rs9,233 cheaper at Rs12,79,947. (All prices are ex-showroom prices in Chennai city and can vary according to the different regions within TN).

However there seems to be no change in the prices of Elantra and Tuscon models.

Meanwhile the company plans to expand its dealer and service network 200 and over 1,000 respectively this year.