The GST rate reduction, effective September 22, will lower the prices of several car models and variants to below `10 lakh. This brings benefits beyond the showroom. Indeed, lower road tax and insurance premiums will make these cars more affordable.

Let’s take a look at models and variants that fall under this category.

Skoda

Take Skoda’s sub-compact SUV, Kylaq. The base manual variant, currently priced at `8.25 lakh, will drop to `7.54 lakh.  

The next manual-geared variant comes down from `9.85 lakh to `8.99 lakh. For the first time, the automatic variant falls under `10 lakh — `9.99 lakh instead of `10.95 lakh.

This shift has a cascading effect. In Kerala, cars priced between `5 lakh to `10 lakh attract 13% road tax, while those above `10 lakh fall into the 15% slab.

So, the automatic variant earlier cost `1.64 lakh in road tax; now, at `9.99 lakh, the tax is `1.29 lakh — a saving of `34,000. Factoring in both ex-showroom price and tax, buyers save around `1.3 lakh. Insurance costs will also dip.

The new GST rate also brings the base variant of Skoda’s mid-size sedan, Slavia, below `10 lakh, at `9.99 lakh (down from `10.49 lakh).

Slavia variants enjoy GST benefit up to `63,207, and Kylaq variants up to `1,19,295.

Maruti Suzuki

Maruti stands to gain the most under the new GST regime. Though final prices are awaited, three variants each of Alto and S-Presso will dip under 5 lakh.

Within `10 lakh, buyers can pick any variants of Maruti hatchbacks upto Baleno.

If you want a premium model, then nine variants of Fronx, four of Brezza, and even two of Ertiga are available in this price bracket.

Mahindra

Mahindra has  already rolled out new prices to enthuse the market. Their revised prices came into effect from September 6 itself. From first glance, it is clear prices have reduced by `1.56 lakh.

Four variants of the XUV 3XO are now available in the under `10 lakh bracket.

Hyundai

Hyundai’s Venue will now have 11 variants under `10 lakh. Four variants were newly added into this price bracket after the GST revisions.

In addition, all variants of Grand i10 Nios, Aura and Exter, plus 12 variants of the i20, will also fall in the under `10 lakh price bracket.

GST reductions for their popular models include: Nios – `73,808 off; Aura – `78,465 off; Exter – `89,209 off; i20 – `98,053 off; i20 N Line – `1,08,116 off; and Venue – `1,23,659 off.