Auto buyers gearing up for premium drive

Shift To Dearer Models

- SWARAJ BAGGONKAR

THE INCREASED AFFORDABILITY following the simplification in the GST rates will allow auto buyers to move up the value chain and opt for more premium products.

According to market experts, buyers will tend to choose premium options as the resultant benefits reduce the price difference between variants of a same model, and even between two segments of cars.

The reduction in GST rate to 18% from 28% will lead to a price correction of around 8.5% in small cars, and between 3.5% and 6.7% for large sedans, mid-size and large SUVs, according to Crisil Intelligence.