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GST: Big utility vehicles become the biggest beneficiary

GST: Big utility vehicles become the biggest beneficiary

The big utility vehicles (UVs) have become the biggest beneficiary under GST, the big SUVs have become attractive by 7-12 per cent depending on the State. And timing it to perfection, some half a dozen high profile SUV (sport utility vehicle) launches are planned in the second half of 2017. In a highly competitive environment, the lower GST (Goods and Services Tax) will enable these companies to price their product aggressively and take the share of utility vehicle segment beyond 25 per cent. The new launches include Chrysler Jeep, Renault Capture, Tata Nexon, Mahindra’s global MPV designed out of North America Technical Centre and a rugged 7 seater SUV, which may offer higher acceptance in the rural areas. Maruti Suzuki will be launching the facelifted S Cross. At the premium end of the market, Skoda will launch the Kodiaq SUV, Mercedes Benz has a new version of GLC coming up and BMW will be launching the new X3. Pawan Goenka, MD at the largest utility vehicle maker Mahindra and Mahindra said the correction in rates for SUV was long overdue, as the segment was selectively being levied with higher rates.

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Last updated: March 20, 2024
by and Alex Morrell is a senior correspondent at Business Insider covering Wall Street at large.

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