GST Cut on Car: If you’re considering a car purchase, this news may be special for you. People eagerly await the month of December to buy cars, as companies typically offer significant discounts at the end of the year. This year, there’s no shortage of discounts in the car market, but the situation isn’t as bad as last year. Demand remains strong, while supply is limited. This means that while offers are attractive, not every model offers a bumper discount. Therefore, buying a car in December this year is not the time to rush, but an opportunity to make a considered decision.

Impact of GST changes and strong demand

The passenger vehicle segment has seen strong growth in the past few months. GST 2.0, the festive season, and strong consumer sentiment have supported the market. Following the reduction in GST, entry-level and compact cars have become more affordable, boosting their sales. This is why companies are reluctant to offer significant discounts on many popular models.

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Highest Discounts on Premium Cars

The premium segment is seeing the most benefits in December. Dealers are looking to quickly clear old stock of luxury SUVs and electric cars. Models like MG Motor’s Gloster and Jeep Grand Cherokee are receiving discounts of up to ₹4 lakh. The newly launched Mahindra XEV 9e is receiving discounts of up to ₹3.8 lakh, and the BE 6 is receiving discounts of up to ₹2.5 lakh, which are considered significant savings in this segment.

Opportunity to Buy Mid-Size SUVs and Sedans

December could also prove to be a profitable month for those buying mid-size SUVs and sedans. Discounts of up to ₹1.76 lakh are being offered on the Honda Elevate and up to ₹1.58 lakh on the Honda City. The Volkswagen Virtus Chrome and Jeep Compass can also be availed with benefits of over ₹1.5 lakh. The electric vehicle segment is also part of this discount cycle, with limited but significant discounts available on the MG ZS EV, Comet EV, and Windsor EV.

Fewer Benefits on High-Demand Models

This year, the most notable feature is that discounts on high-demand models are very limited. These cars are being sold at the new prices fixed after the GST cut. In contrast, companies are offering higher offers on slower-moving variants and older stock. The mainstream hatchback and compact SUV segments are currently experiencing mid-range discounts.

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Double Benefits of December Offers

While discounts aren’t uniform across all cars, when combined with the GST cut, company schemes, dealer discounts, and accessory gifts, significant savings are available on many models. The total benefits on some cars are reaching nearly ₹2 lakh. For example, the Hyundai Xcent, combined with GST relief and December offers, can offer benefits of up to ₹1.75 lakh.

Consider these factors before buying a car

Along with discounts, it’s important to consider the car’s mileage, safety features, and technology. After-sales service, brand reliability, and future resale value also influence the purchase decision. According to industry experts, entry-level hatchbacks are currently in the highest demand, while the compact SUV segment has seen the fastest growth. The market share of SUVs has also increased rapidly over the past few years, reflecting changing customer preferences.