The luxury cars are the part of our life. To life the life in comfort zone. Today we dicuss about the GST may cause problems but it will benefit in future.
The upcoming goods and service tax (GST) may cause a temporary problems in the market, but will be beneficial in the future. Luxury carmaker Jaguar Land Rover said on Saturday, echoing the narrative much sold during the Narendra Modi government’s demonetisation drive of November-December 2016.
Luxury cars are expected to attract 28% GST, besides a cess capped at 13%. The net taxes on luxury cars are thus slated to reduce by 4-8%, which would boost sales July onwards. This may cause a drop in the sales due to anxious buyers delaying their purchase.
So JLR, besides BMW, Mercedes-Benz and Ford, have passed on the benefit of GST to the customer right away till June 30.
Tata Motors-owned JLR holds up to 8-9% share in the luxury car segment together. While Jaguar sells luxury sedans XE, XF, XJ and XJL; a sports coupe F-Type and an SUV F-Pace, the Land Rover brand clocks robust sales of its luxury SUV range — from Discovery Sport and Range Rover Evoque — in both diesel and petrol engines.
On the entry of the American luxury brand Jeep in india, Suri said, “We welcome the competition; you become stronger when there’s a competition. So far we haven’t seen any impact on our Land Rover sales.
Jaguar Land Rover displayed the Velar and the I-Pace concept at the Geneva Motor Show in March.
Out of the entire range, the Jaguar XE, XF, XJ, Range Rover Evoque and Discovery Sport are already localised.
The sales of JLR have long been key for the parent Tata Motors whose passenger vehicle. Sales have picked up only recently, thanks to new models like Tiago, Tigor and the Hexa. However, it is JLR that’s keeping the company afloat, according to several sales data and reports.