Maruti not passing on tax benefits to customers with the new Swift

Maruti not passing on tax benefits to customers with the new Swift

Maruti Suzuki India recently updated their Swift petrol model with their 1.2 liter petrol engine.

Swift was previously offered with a 1.3 liter engine. Maruti had to update the model because of the newer emission norms.

The new engine is more fuel efficient and less polluting.

This engine also meant that the Swift model now falls under the 8% excise duty bracket compared to the 20% previously.

Indian government has different taxes applied on models based on their engine size!

Maruti has decided not to lower the price tag of Swift with the switch of the engine. The company said: “For Swift, there is a cost increase owing to the new petrol engine. Add to it the increase in commodity prices.”

Essentially, they are paying lesser taxes to the government. You are paying the same money for the car. The car gets a smaller engine. It remains to be seen if it affects the performance of the car.