New Delhi, Aug 19 (IANS) Customer enquiries for cars have increased significantly by 15-20 per cent across segments after Maruti Suzuki India (MSIL) announced passing on the full benefits of GST 2.0, a report said on Friday.

Dealers have been witnessing a surge in enquiries in both online and walk-in, and especially for entry-level cars like K10, Celerio, S-presso and Wagon R, in Tier-1 cities, HSBC Global Investment said in its report.

According to the report, the share of first-time buyers has increased by 5-7 per cent in total bookings so far.

The premium hatchback segment (Swift, Baleno, and others) is also seeing a decent uptick.

The report highlighted that the passenger vehicle (PV) segment is now expected to grow by double digits (YoY) during the upcoming festive season, compared to single digits before the GST cut announcement.

MSIL announced steep price cuts on its entry-level portfolio, more than the impact of the GST cut.

“MSIL took a price cut of 11-21 per cent on its entry-level portfolio. 9-11 per cent on premium hatchbacks, and up to 8 per cent on Brezza, more than the impact of the GST cut (3.5-8 per cent),” the report noted.

Maruti Suzuki announced a reduction in car prices across its portfolio on Thursday, allowing customers to fully benefit from the recent drop in the GST rates on cars.

Entry-level models will see the biggest reductions, with the Alto K10 and S-Presso seeing price reductions of up to Rs 1.07 lakh and Rs 1.29 lakh, respectively.

Significant savings of between Rs 71,300 and Rs 1.29 lakh will also be available for other hatchbacks, including the Celerio, Wagon-R, and Ignis.

The cost of small SUVs will also decrease.

The GST Council approved the 5 and 18 per cent tax structure, scrapping the earlier four slab (5,12,18,1nd 28 per cent).

By primarily setting GST rates at 18 per cent for small cars and 40 per cent for larger or luxury vehicles, this reform streamlines the tax structure and does away with the previous compensation cess. EVs are still under a favourable 5 per cent GST rate.

—IANS

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