Mahindra & Mahindra Ltd. (M&M Ltd.), India’s leading SUV and tractor manufacturer, announced revised prices of its vehicles pursuant to the implementation of GST, with immediate effect. Lauding the implementation of GST, Dr Pawan Goenka, Managing Director, Mahindra & Mahindra Ltd. said, “We believe this landmark reform will significantly improve the ease of doing business and Indian competitiveness. It will also benefit consumers, thus being a win-win for all. The transition to GST has been seamless for M&M.”
The prices of vehicles for end-customers on large UVs and SUVs have been reduced by an average of 6.9 per cent, while those that come under small car segment have been reduced by an average of 1.4 per cent. Similarly, end-customer prices have been reduced by an average of 1.1 per cent for small commercial vehicles and 0.5 per cent for LCVs and HCVs. Since the GST rates on hybrid vehicles are significantly higher than that in the pre-GST regime, the prices for the end-customers of hybrid vehicles have been increased marginally. These price changes to end-customers will vary across states or even cities within a state, due to the differing levels of pre-GST local taxes.
The effect of the imposition of GST for tractors, which were not levied an excise duty, should be neutral given the input tax credits that would be available to OEMs. Hence there will be no change for end-customer prices for tractors.