Maruti Suzuki , Whenever you hear this name it brings a joy in yourself from inside . Every Indian relates itself by this word . This Word Maruti has become the name of trust in People’s mind . With this trust Maruti Suzuki cars are bestsellers cars in India . These cars are so much famous that in 2020 also when Many Global Companies like Ford , Toyota , Fond have tech-friendly cars Still in every 1 out of 2 car is of Maruti . Here we will tell you why Maruti Suzuki Cars are bestsellers in India .
Yes , You heard Right . In India Taxation on Cars is very high . Few days back Toyota has also pointed that Taxation on cars is very high . In last 10 years car sales growth in India has increased by only 3-4% compoundedly . All this is because of taxation . This Reason Makes Maruti Suzuki Best Seller Cars in India .
Petrol Car Taxation
In India Taxation on cars is done on 3 Types of cars . First type , If car engine is upto 1200cc or 1.2 L and your car length is upto 4 meters . Then you have to pay 28% GST and 1% Compensation Tax which makes 29% Tax . Second Type , If Car engine is less than 1200cc or 1.2L and length of your car is more than 4 meters then you will pay 28% GST and 15% Compensation Tax which makes 43% tax . In Third Case , If Car Engine is more than 1200cc or 1.2L and length is more or less than 4 meters than you have to pay 28% GST and 22% Compensation Tax which makes 50% Tax . All these above conditions are for Petrol Cars .
Diesel Car Taxation
In Diesel Car Case , Taxation is done on different basis . In Diesel Car Case Taxation is done on 1500cc Engines . Taxation on diesel cars is done on 3 Type of cars . First type , If Car engine is less than 1500cc or 1.5L and length less than 4 meters then you will pay 28% GST and 3% Compensation Tax which makes 31% Tax . Second type , If car engine is less than 1500cc or 1.5L and length more than 4 meters then you have to pay 28% GST and 20% Compensation Tax which makes 48% Tax . Third Type if car engine is more than 1500cc or 1.5L and length more than 4 meters and ground clearance of 1700mm or more then you have to pay 28% GST and 22% Compensation Tax which makes 50% Tax .
These Taxation Norms on the basis of Car Engine and Length is followed in India Only . In Other Countries no such norms are there . 28% GST is fixed foe Private Cars and Compensation Tax is according to on Engine Capacity and Car Length is based on Motor Vehicle Act, 1988
Let’s Understand it with an Example
Suppose there are two car companies One is Maruti Suzuki and other is Global Car Manufacturer . Both Car price is 10 Lakh Rupees and Feature of Both Car are same . Since Maruti Suzuki is an Indian Car Manufacturer company . So it design it’s car according to Indian Norms i.e Less than 4 Meters and have engine less than 1200cc or 1.2 L . In That Case Maruti Suzuki Car will be available to Consumer on 29% Tax i.e 10 Lakh + 2.9 Lakh Tax =12.9 Lakh
On the Other Hand Global Car Manufacturer Manufactures Car having 1250cc or 1.25L engine then 28% GST + 22% Compensation Tax which makes 50% Tax i.e 10 Lakh + 5 Lakh Tax = 15 lakh .
From the above Example you can see that Initial Car price of both car and Feature are same but due to Taxation norms , Global Manufacturer Car is around 2 Lakh Rupee Costlier and people Say that Global Manufacturer Car Is costlier . These Taxation Rules are very old .
Network Reach and Availability
Due to Taxation Norms Maruti Suzuki has got the benefit and become the number one car seller in India . Due to This Maruti Suzuki has increased it’s reach and now it’s showroom and Service is Available in a small Indian City . This Reach helps Maruti Suzuki to gain people’s trust