GST impact: 2017 Jeep Compass price may start below Rs. 15 lakh

Currently, SUVs attract an overall incidence of above 50 percent, which would come down to 43 percent after GST.

Off-road enthusiasts are waiting for the launch of Jeep Compass in India. The most affordable made-in-India Jeep model is expected to enter the market sometime in August. Fiat Chrysler Automobiles (FCA) India, the parent company of Jeep India, has already revealed most of the details of the Compass except the price. It looks like the proposed Goods and Service Tax (GST) starting from July 1 will dictate the pricing.

Also read: After Jeep Compass, FCA to launch Renegade compact SUV priced under Rs 10 lakh

Earlier reports suggested Jeep would price the Compass from Rs. 15 lakh. Even at the rumoured price, the compact SUV is a compelling case against Hyundai Tucson and Skoda Yeti. Now, a report in Financial Express suggests prices might go below Rs. 15 lakh, thanks to GST. However, FCA has not revealed yet the Compass's pricing.

Currently, SUVs attract an overall incidence of above 50 percent, which would come down to 43 percent (GST of 28 per cent and cess of 15 per cent) after GST kicks in. With local production of Compass, Jeep may able to price the compact SUV very competitively at less than Rs 15 lakh.

The Compass is set to be the volume driver not only for Jeep India but also for FCA. The Fiat marquee under FCA is not doing great in terms of sales in the country. Hence, FCA and Jeep will make sure the Compass will be priced right.

The initial impressions are in favour of the Compass. Early numbers show the Compass has garnered 1,000 bookings in just three days after the pre-bookings started. A source told International Business Times, India that the Kochi dealership has received 50 bookings on day 1. This is an overwhelming response since other models of Jeep such as the Wrangler and Grand Cherokee got a lukewarm response in the country. Wrangler starts at around Rs. 56 lakh while the Grand Cherokee costs between Rs. 93 lakh and Rs. 1.1 crore.

The Compass has confirmed a 2.0-litre MultiJet diesel engine and a 1.4-litre MultiAir turbo petrol engine options under the hood. The diesel mill will develop 170hp and 350Nm of torque mated to a six-speed manual transmission. On the other hand, the petrol mill will belt out 160hp. A six-speed manual and a seven-speed dual-clutch automatic will be offered with the petrol mill.