From Hyundai to Tata Motors, here's how much cheaper cars get under GST 2.0

Hyundai, Tata Motors, Mahindra, Maruti and Renault have announced steep cuts across cars and CVs, with reductions ranging from ₹30,000 to ₹4.65 lakh from September 22

Automobile manufacturers have moved swiftly to pass on the benefits of the Goods and Services Tax (GST) rate rationalisation, announcing substantial price cuts across their passenger and commercial vehicle portfolios. From Hyundai to Tata Motors, Mahindra, Maruti Suzuki and Renault, discounts will range from ₹30,000 to ₹4.65 lakh, effective September 22, 2025.

 

Why it matters

 

Festive boost: The cuts land just as the auto sector enters its biggest sales season of the year.

 

Small car revival: Maruti Suzuki expects the segment to grow by 10 per cent, reversing recent sluggishness.

 

Accessibility: Price drops make passenger cars and two-wheelers more affordable for first-time buyers.

   

Commercial edge: Lower CV prices could aid transporters, logistics players, and fleet operators under pressure from rising fuel costs.

 

Hyundai trims prices by up to ₹2.4 lakh

 

Hyundai Motor India said it has reduced prices of its entire line-up by up to ₹2.4 lakh, effective September 22. The cuts start at ₹60,640 on the Verna and go up to ₹2.4 lakh on the Tucson SUV.

  “This reform is not only a boost to the automotive industry but also a strong step towards empowering millions of customers by making personal mobility more affordable and accessible,” Hyundai Motor India Managing Director Unsoo Kim said.

 

Tata Motors cuts CVs by up to ₹4.65 lakh

 

Tata Motors announced it will pass on the entire GST benefit on its commercial vehicles, cutting prices between ₹30,000 and ₹4.65 lakh. The revised prices will apply from September 22.

 

The company has already announced passenger vehicle price cuts ranging between ₹75,000 and ₹1.45 lakh. These include reductions of ₹75,000 on the Tiago, ₹80,000 on the Tigor, ₹1.10 lakh on the Altroz, ₹85,000 on the Punch, and ₹1.55 lakh on the Nexon. The Harrier and Safari SUVs will see cuts of ₹1.4 lakh and ₹1.45 lakh, respectively.

  Tata Motors Passenger Vehicles MD Shailesh Chandra said the decision aligns with the Centre’s reform intent. “The reduction in GST is a progressive and timely decision that will make personal mobility more accessible for millions across India,” he noted.

 

Mahindra trims SUVs by up to ₹1.56 lakh

 

Mahindra & Mahindra said it has cut prices of its passenger vehicles by up to ₹1.56 lakh, effective immediately from September 6. The Bolero/Neo range is down ₹1.27 lakh, the XUV3XO petrol by ₹1.4 lakh, the diesel variant by ₹1.56 lakh, the Thar 2WD by ₹1.35 lakh and the Thar 4WD by ₹1.01 lakh.

 

The Scorpio Classic is cheaper by ₹1.01 lakh, the Scorpio-N by ₹1.45 lakh, the Thar Roxx by ₹1.33 lakh and the XUV700 by ₹1.43 lakh.

 

Maruti Suzuki sees small cars cheaper by up to 9%

 

Maruti Suzuki Chairman RC Bhargava confirmed the company would also pass on the GST benefits. He said small cars could become cheaper by 8.5–9 per cent. Maruti’s Alto could see a reduction of ₹40,000–50,000, while the Wagon R may be cheaper by ₹60,000–67,000.

  Bhargava projected that with the GST cut, the small car market could grow by over 10 per cent this year, driving overall passenger car market growth of 6–8 per cent.

 

Renault India trims Kwid, Triber, Kiger

 

Renault India announced it will reduce prices of its vehicles by up to ₹96,395 from September 22. The Kwid will be cheaper by up to ₹55,095, the Triber by ₹80,195, and the Kiger by up to ₹96,395.

  Renault India MD Venkatram Mamillapalle said, “Passing on the full GST 2.0 benefit is a reflection of our unwavering commitment to our customers. We believe this timely initiative will not only make our cars more accessible but also energise demand during the festive season.”

 

GST Council rationalises rates

 

On September 3, the GST Council approved a major overhaul of the tax structure, slashing the levy on small cars (under 4 metres and 1,200 cc for petrol/1,500 cc for diesel) to 18 per cent from 28 per cent earlier. Larger cars and SUVs (over 4 metres and 1,500 cc) will now attract a 40 per cent GST rate. Motorcycles below 350 cc will be taxed at 18 per cent instead of 28 per cent, while EVs continue to attract a 5 per cent rate.

 

With the new rates kicking in from September 22, coinciding with Navratri, automakers are betting on renewed demand to boost sales in what is traditionally the most important buying season.  (With inputs from agencies)