What are sub-4 metre cars? See new prices for Mahindra, Tata, Toyota models- The Week

Following the recent Goods and Services Tax (GST) rate cuts, prices have been slashed for cars measuring 4 metres or below in length, which are powered by an engine less than 1200cc (petrol) or 1500cc (diesel).

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The GST rates for such cars has been slashed to 18 per cent—from the previous figure of 28 per cent—and will come into effect from September 22. Bigger cars and SUVs, however, fall under a special 40 per cent “sin goods” slab, without any additional cess.

How is this length measured?

Using a measuring tape, measure the car’s total length (straight line) from the very front of the car’s front bumper to the furthest part of the rear bumper. If this length is below 4m (4000mm), it falls within the sub-4 metre category, and is eligible for just an 18 per cent GST rate, instead of 28 per cent. 

Price cuts

From Mahindra to Toyota, various carmakers have slashed prices across their sub-4 metre segment to boost sales ahead of the festive season starting late September.

ALSO READ | GST cuts to bring down annual CPI inflation by up to 1 pc; companies keen on passing full benefits to boost demand

Here are 5 carmakers offering hefty discounts on their cars:

Mahindra

Mahindra & Mahindra on Saturday announced it would be slashing up to Rs 1.56 lakhs on its vehicles in the sub-4 metre segment, depending on the model.

While the XUV3XO (diesel) sees the highest price cut of Rs 1.56 lakhs after the GST rate on it was reduced from 31 per cent to 18 per cent, the Thar 4WD (diesel) saw the lowest price cut of Rs 1.01 lakhs after its GST rate dipped from 48 per cent to 40 per cent.

The XUV700, Scorpio-N, and XUV3XO (petrol) are other models getting similar discounts.

Tata

Tata Motors on Friday announced price cuts in the range of Rs 65,000 to Rs 1.45 lakhs for its best-selling hatchbacks and compact SUVs.

While the price of compact SUVs like the Nexon will drop by Rs 1.55 lakhs, small cars like the Tiago, Tigor, and Altroz will see price cuts of Rs 75,000, Rs 80,000, and Rs 1.10 lakhs respectively. Bigger SUVs like the Harrier and Safari will see price cuts of Rs 1.4 lakhs and Rs 1.45 lakhs.

Toyota

Revised prices for Toyota cars will come into effect from September 22 onwards, the carmaker said on Saturday. The Toyota Fortuner will get a whopping Rs 3.49-lakh price cut, while the Glanza will see a reduction of Rs 85,300.

The brand’s bigger models like the Crysta and Hycross will become cheaper by up to Rs 1.8 lakhs and Rs 1.15 lakhs respectively. 

Maruti

Although Maruti Suzuki has not yet officially announced any price cuts on their sub-4 metre cars, chairman R.C. Bhargava hinted in a Business Standard interview that the price of the Alto could drop by Rs 40,000 to Rs 50,000, while the WagonR could see a discount in the range of Rs 60,000 and Rs 67,000.

Renault

Renault India on Saturday announced it would slash prices of its vehicles by up to Rs 96,395 from September 22 onwards. Some variants of the Kiger range will get the highest discounts, while cars in the Kwid and Triber range will see price cuts of up to Rs 55,095 and Rs 80,195 respectively.   

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