There has been quite a hullabaloo in the country on the prices of various commodities ever since the Goods & Service Tax (GST) was officially implemented on July 1, 2017. First things first, the GST was introduced to repeal all the existing taxation systems such as VAT, Excise, Service tax etc. to name a few and introduce a single tax system to replace all these. There were several myths and folklores in the mind of masses as whether the prices would go up or down, or even remain the same; would they be benefitted or incur losses, or it won't affect them at all. Even in the world of automobile, buyers were hugely concerned about the prices of their favorite cars and hence, we couldn't help ourselves but come up with a thorough comparison of prices - prior to GST and after GST - of India's top 10 selling hatchbacks.
To start off, Lets speak about existing tax levied on the hatchbacks sold in India with length lesser than 4 meters and engine capacity upto 1200cc. The petrol hatchbacks fulfilling the aforementioned criteria used to attract a total tax of 31.5 percent, comprising of Excise duty, Various cess, NCD and VAT, but with the implementation of GST, it has come down to 29 percent (28 percent tax + 1 percent cess), resulting in a downward revision of 2.5 percent. Thus, making the cars a bit more cheaper and budget-friendly than before. As for the diesel hatchbacks, a total of 33.25 percent tax including Excise, VAT and cess was levied on the Ex. Showroom price, but now with the GST in place, they would attract 31 percent tax (28 percent tax + 3 percent cess), making it lower by 2.25 percent and the cars a bit inexpensive.
Price Before GST (Ex. Showroom)
Price After GST (Ex. Showroom)
Maruti Alto 800
Maruti Alto K10
Maruti Wagon R
Hyundai Grand i10
Hyundai Elite i20
Starting with Maruti Alto, which has been a true 'Bahubali' in the Indian automotive arena ever since its launch way back in 2000. Currently, it is on sale in two derivatives: Maruti Alto 800 and Maruti Alto K10. The former or the latter hasn't been affected much by the GST as the prices are more or less the same as previously. There is a mere reduction of Rs. 1000. The next hatch in the list is Maruti Wagon R, which has stood tall in the grueling competition and made a name for itself amidst heavyweights. It, identical to the Alto, has mostly remained unfazed with the GST, with prices dropping as low as Rs. 1000-2000, depeding upon the variants. The next in the list is the Maruti's magnum-opus product - the Swift, which has also not witnessed any substantial drop in price as they are still the same, save for a reduction around Rs. 1000-1500, depeding upon the variant.
The last Maruti stalwart but certainly not the least in the list is the Baleno, which is sold via the newly opened NEXA network of premium showrooms. It has seen a drop in prices by Rs. 2000-3000, depending upon the variant. Moving on to Hyundai, the second largest automaker in the Indian market, it has three hatchbacks in the list: Eon, Grand i10 and Elite. The entry-level Eon records a slashing in price by Rs. 3000-4000 due to GST, depending upon the variant. The company's blue eyed pot, the Grand i10, sees a drop in prices by Rs. 3000-6000 in the India, while the flagship i20 has prices lower by Rs. 4000-10,000 in the country. Tata Motors' Tiago, which has been doing wonders since its launch, has witnessed a drop in prices by Rs. 3,000-13,000 due to GST. Lastly, the Honda Jazz, which competes with Maruti Baleno and Hyundai i20, has a downward price revision of Rs. 6000-8000 in the domestic market due to GST.