GST impact: Hyundai announces price hike, other companies likely to follow suit

Hyundai India has announced a price hike due to the recent change in the GST structure for cars. The price hike would be effective from September 11, 2017. 

A 2-5% increase could be seen in the prices of Hyundai Elite i20, Verna, Elantra and Tucson. However, the Hyundai Grand i10, Eon and Xcent prices remain unchanged.

Price of the Hyundai Elite i20 had been increased by Rs 12,457 on the 1.4-litre petrol automatic variant. Newly launched Verna's price has been increased by Rs 29,090 while the hike for the Hyundai Creta's prices range between Rs 20,900-55,375. 

The premium Hyundai Elantra's prices have now increased by Rs 50,312 - 75,991 and the Hyundai Tucson's by Rs 64,828 - 84,867.

It is expected that other manufacturers too will announce a price hike in the coming days.

Earlier this month,  the GST Council decided to levy an additional 2 to 7% cess on mid-sized and luxury cars including SUVs.

The council, headed by Jaitley, however, decided not to levy any additional tax on small petrol and diesel cars of up to 1200 cc as well as on hybrid ones.

Under the new GST regime, cars attract the top tax rate of 28 %. On top of this, a cess of 1-15 % is levied on them to create a corpus to compensate states for loss of revenue from GST implementation.