FCA India Revises Prices Following Increase In Cess; CBU Models Get Expensive By INR 640,000

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The GST Council recently approved an increase of State Compensation Cess limit under GST on Saturday, which has affected the prices of many cars (above 4-meters in length) and brought them close to the pre-GST levels. The effect is already visible as car makers are announcing updated prices for their products. We recently saw Honda revise the prices of the City, BR-V and CR-V after GST cess hike. Toyota cars will also get expensive by up to INR 1.7 lakh. The revised tax structure also forced Isuzu to increase prices by up to 5 percent.


Fiat Chrysler Automobiles (FCA) India too announced new prices for its Jeep and Fiat range of vehicles following the increase in Cess implemented by the GST Council. With the increase in Cess, FIAT products will get expensive by up to INR 14,000 while the recently launched, Made In India Jeep Compass will get a price hike of up to INR 72,000. The CBU models of the Jeep family will get a massive hike of up to INR 640,000 depending on the product. The new prices mentioned below are applicable to the entire range and are effective from September 15, 2017:

  • FIAT price increase: INR 9,000 to INR 14,000
  • Jeep Compass price increase: INR 21,000 to INR 72,000
  • Jeep CBU price increase: INR 275,000 to INR 640,000


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The decision to increase the State Compensation Cess limit under GST has not gone down well with the industry. The revision in prices is likely to affect the festive season sales for premium car makers. A statement released by Society of Indian Automobile Manufacturers (SIAM) says that the cabinet clearance of the Government proposal for an ordinance to increase the State Compensation Cess limit under GST from 15% to 25% on Automobiles is an unfortunate decision. Although the clearance of the ordinance is just an enabling clause for the GST Council to be able to increase the cess but it is clearly evident that the Government’s intention is to increase the overall tax burden on many different categories of vehicles.

Read Industry’s Reaction To The Increased State Compensation Cess Limit On Automobiles Here

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What do you have to say about the increase in prices post the increase the State Compensation Cess limit under GST? Let us know your views through the comments section below.

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