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JSW MG Motor India and Kia have announced that they will pass on the benefits of the Goods and Services Tax (GST) rate rationalisation to customers, the companies said on Monday.
MG Motor said it will extend the full benefit of the GST reduction across its SUV portfolio, with price cuts ranging from ₹54,000 to ₹3,04,000, effective from September 7, reported PTI.
Vinay Raina, chief commercial officer at JSW MG Motor India, said that GST rate cuts directly addressed the affordability challenge for car buyers and built positive consumer sentiment.
“By extending the full benefit of this reform across our SUV portfolio, we want to ensure customers experience the immediate value of this change. At a time when demand is set to strengthen, especially around the festive season, our focus is on making our SUVs — Astor, Hector, and Gloster — more accessible and attractive. More than just passing on the benefits, this move reinforces trust, enables easier ownership, and encourages more customers to embrace MG,” Raina said, as quoted by the Economic Times.
Meanwhile, Kia India also announced price reductions ranging from ₹48,513 on the Carens to ₹4,48,542 on the Carnival, effective from September 22, the company said, according to PTI.
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New GST rates
The move comes after the GST Council approved a new tax structure of 5, 18, and 40 per cent tax earlier this month, which will take effect from September 22. Under the revised rates, small cars (under 4 metres and 1,200 cc for petrol/1,500 cc for diesel) will see the GST cut to 18 per cent from 28 per cent. Larger cars and SUVs (over 4 metres and 1,500 cc) will attract a 40 per cent GST rate, while motorcycles below 350 cc will be taxed at 18 per cent instead of 28 per cent. Electric vehicles will continue to attract a 5 per cent GST.
Other automakers, including Mahindra, Maruti Suzuki, Renault, Tata Motors, and Hyundai India, have also announced price reductions following the GST rationalisation. The lower prices are expected to boost passenger vehicle sales as India enters the festive season, a period that typically sees strong demand and robust sales.
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