Photo source: www.motozite.com
The rollout of GST 2.0, effective 22 September 2025, is set to change India’s car market dynamics. With revised GST slabs, smaller cars (under 4 metres, petrol engines ≤1200cc, diesel ≤1500cc) now attract 18% GST (down from 28%), while larger SUVs and premium cars fall under 40% GST but with the removal of additional cesses. This restructuring has prompted all major automakers to announce significant price cuts across their lineups, making car ownership more affordable.
Brand-Wise Impact
Mahindra & Mahindra
Mahindra acted early, reducing prices from 6 September. SUVs like the Thar (₹1.01–1.35 lakh cheaper), XUV700 (~₹1.43 lakh off), and Scorpio-N (~₹1.45 lakh off) are now more competitive in the mid-SUV segment.
Tata Motors
Tata announced cuts of up to ₹1.55 lakh across its range. The popular Nexon gets maximum relief, while the Harrier and Safari see price drops of around ₹1.40 lakh. Hatchbacks like Tiago and Altroz also benefit with ₹65,000–85,000 savings.
Toyota
Toyota is passing on full benefits with reductions up to ₹3.49 lakh. The Fortuner and Legender lead the list, while the Innova Crysta drops by ₹1.8 lakh. Even smaller cars like Glanza and Taisor are more affordable with savings of ~₹85,000.
Hyundai
Hyundai’s reductions go as high as ₹2.40 lakh. The flagship Tucson sees the largest cut, while mass-market models such as Grand i10 Nios (~₹74k off), i20 (~₹98k off), Venue (~₹1.2 lakh off), and Creta (~₹70k off) get notable price relief.
Honda
Honda Cars India has lowered prices by up to ₹95,500, making the City and Amaze more attractive in the sedan segment.
Maruti Suzuki
India’s largest carmaker has announced cuts across its entire lineup. Popular hatchbacks like Alto K10, Swift, and Baleno, as well as SUVs like Brezza and Grand Vitara, now come with reductions ranging from ₹45,000 to ₹1.2 lakh, depending on the variant.
Kia Motors
Kia has slashed prices by up to ₹1.6 lakh. Models like Seltos, Sonet, and Carens now become more value-for-money, boosting their competitive edge in the family car segment.
Skoda & Volkswagen
Skoda and Volkswagen have announced benefits ranging from ₹70,000 to ₹2 lakh. The Slavia, Kushaq, and Virtus become more affordable, while premium models also see meaningful reductions.
MG Motor
MG is offering price cuts of up to ₹1.5 lakh across models like the Astor, Hector, and Gloster, ensuring stronger value positioning in the SUV space.
For customers planning to purchase cars, GST 2.0 is a golden opportunity. With savings ranging from ₹45,000 on small hatchbacks to over ₹3.4 lakh on premium SUVs, buyers across all budget segments will benefit. Since the changes are effective 22 September 2025, it is advisable to confirm revised ex-showroom prices with dealerships before booking.
