Maruti Suzuki cuts prices by up to ₹1.3 lakh after GST rate slash

Maruti Suzuki cut prices by up to Rs 1.3 lakh across models after GST rationalisation, aiming to boost festive demand and encourage two-wheeler owners to upgrade to cars

Maruti Suzuki India (MSIL) on Thursday announced price cuts of up to ₹130,000 across its models effective September 22, passing on full GST benefits along with additional reductions to boost demand and encourage customers to move from two-wheelers to four-wheelers ahead of the festival season.

 

Partho Banerjee, senior executive officer, Marketing and Sales, MSIL, said in a video press conference that the price cuts are particularly significant in the entry-level segment.

 

“In Alto K10, the reduction is in the range of 10.6-20 per cent; in S-Presso, 12.6-24 per cent; Celerio, 8.6-17 per cent; Wagon R, 8.7-14 per cent. This is a double bonanza for the festival season to accelerate motorisation in the country,” he said.

 

 

Asked if the price reduction would boost demand for small cars, Banerjee said, “We are in all form factors and technologies. Our endeavour is to increase the pie of the auto industry, increase motorisation in India. We are technologically agnostic. Customers can choose what they want.”

 

 

 

He added that MSIL has passed on GST benefits not just on car prices but also on service parts, with the aim of reducing the total cost of ownership for customers.

 

On the issue of compensation cess already paid by automobile dealers on stocked vehicles, which cannot be claimed from customers following GST rationalisation, Banerjee said, “Different bodies (FADA, SIAM, etc.) are taking up the matter with the government. I think some solution will be worked out.”

 

Asked about expected sales growth during the festive season, he said, “It is too early to comment. There is a lot of pent-up demand. We should not read much into the sales we will see in the next 2–3 months. In FY27, which is next financial year, I expect the growth rate will be about 6–7 per cent.”

 

The price cuts follow the GST Council’s decision on September 3 to reduce tax rates on automobiles. Small cars (less than four metres in length with engines up to 1,200 cc for petrol and 1,500 cc for diesel) will now attract 18 per cent GST, down from 29-31 per cent earlier, including cess.