GST 2.0: MG cars Price Dropped By Rs 3.04 Lakh Ahead Of Festive Season

JSW MG Motor India has announced a major price cut across its internal combustion engine (ICE) SUV lineup after the recent implementation of GST 2.0. With the new tax rates in effect from September 7, 2025, popular models like the Astor, Hector and Gloster have become more affordable

The reductions vary depending on the model and variant, starting at Rs 54,000 for the Astor and going up to Rs 3.04 lakh for the Gloster. This step directly passes on the benefits of the new tax structure to customers making SUVs more attractive ahead of the festive season 

New GST Tax Slab Change For SUVs

The GST Council recently announced a major revision in the tax structure for passenger vehicles. SUVs which were earlier taxed at 50 percent (28 percent GST + 22 percent cess) will now be taxed at a flat 40 percent rate under GST 2.0

This change has brought immediate relief to buyers and allowed automakers like JSW MG Motor to lower prices

GST Tax Slab Change For SUVs

MG Cars New Pricing After GST Cut

The new GST rates have resulted in significant price cuts across MG’s ICE SUV portfolio. Each model now comes with direct savings for buyers.

These figures highlight that the highest benefit goes to Gloster buyers, while the Astor, being the most affordable SUV in the lineup, sees a more moderate reduction. 

MG Transfers Complete GST 2.0 Benefit To Buyers

JSW MG Motor has clarified that it is passing the full benefit of GST cuts to customers without holding back any amount. The reductions apply to all ICE SUV models and variants.

• Astor buyers can save up to Rs 54,000.
• Hector petrol and diesel buyers both get a benefit of up to Rs 1.49 lakh.
• Gloster buyers, the biggest gainers, can save up to Rs 3.04 lakh.

This makes SUVs more budget-friendly and strengthens MG’s position in India’s competitive SUV market.

Official Statement From JSW MG Motor

Vinay Raina, Chief Commercial Officer of JSW MG Motor India, explained the move:

“The government’s decision to revise GST is a welcome step. It directly helps car buyers by improving affordability and creates positive market sentiment. By giving customers the full benefit across our SUV lineup, we want them to see the real value of this reform. With festive demand picking up, our focus is on making Astor, Hector, and Gloster more accessible and appealing.”

His statement makes it clear that the company is not just aiming at higher sales but also at building long-term trust with customers.

Festive Season Advantage

The timing of the GST cut works well for the automobile industry. The festive season in India is when car sales usually peak and this move is expected to create fresh momentum.

• More showroom visits: Lower prices will bring in more potential buyers
• Upgrade option: Customers can now afford higher trims without stretching budgets
• Stronger demand in rural areas: SUVs are already popular in semi-urban and rural regions, and lower prices will attract more buyers

JSW MG Motor is also supporting customers with special finance offers, such as

• 100% on-road funding for easier ownership
• Three month EMI holiday allowing buyers to start paying later

These added benefits make SUV ownership smoother and more convenient during the festive buying rush.

How GST 2.0 Shapes The SUV Market

The reduction in GST for SUVs is expected to reshape the automobile market in India.

Benefits For Buyers

1. Lower upfront costs: Reduced ex-showroom prices make SUVs more affordable.
2. Better loan options: Smaller loan amounts reduce monthly EMIs.
3. Opportunity to upgrade: Buyers can now consider moving from smaller cars to SUVs.

Benefits For Automakers

1. Improved sales volumes: Lower prices will boost demand.
2. Inventory clearance: Dealers can sell stock faster before the festive rush.
3. Competitive edge: Automakers passing full benefits stand out in the market.

ICE SUVs Vs Electric SUVs

Even though electric vehicles (EVs) are gaining attention, ICE SUVs still dominate sales in India. The reasons include:

• Stronger road network support: No dependency on charging stations.
• Long driving range: Ideal for highway and rural driving.
• Lower starting price: Especially after GST cuts, ICE SUVs remain cheaper than EVs.

The new GST benefits make ICE SUVs even more appealing to buyers who prioritize practicality and cost.

The implementation of GST 2.0 has given a major push to India’s SUV market. By reducing taxes from 50 percent to 40 percent, the government has directly lowered costs for customers. JSW MG Motor has taken a bold step by passing the full benefit to buyers cutting prices by up to Rs 3.04 lakh across its Astor, Hector and Gloster ICE SUVs

Combined with festive-season offers like full on road financing and EMI holidays, these price cuts are expected to increase footfalls improve affordability, and strengthen buyer confidence

For customers looking to buy an SUV, this is the right time. Lower taxes, festive discounts and better financing make SUVs a value-driven purchase in today’s market