The automobile industry in India saw a sweeping change as new GST rates for cars were implemented from September 22, 2025. This move has led to significant price reductions for popular hatchbacks, sedans, SUVs and premium vehicles. Small cars now attract a flat 18 percent GST while bigger vehicles have benefited from lowered taxation as well. Savings are visible across brands making cars cheaper for buyers — both in terms of ex-showroom and on-road prices.
GST Rate Impact On Car Prices
With GST revised from 28 percent (plus compensation cess) to a simple 18 percent for small cars, car insurance premiums and road tax have also gone down. Larger cars and SUVs see price drops with new 40 percent GST, in line with engine size or body length.
Key Points
- Small cars- GST is now 18%, making hatchbacks and compact sedans more affordable.
- SUVs and premium models- Tax reduction leads to price drops worth lakhs on select models.
- Buyers benefit- Cheaper ex-showroom prices directly lower insurance and road tax.
Mahindra Car Price Drops
Mahindra — Savings Up To ₹1.56 Lakh
| Model | Price Drop |
| Bolero Neo | ₹1,27,000 |
| XUV 3XO (Petrol) | ₹1,40,000 |
| XUV 3XO (Diesel) | ₹1,56,000 |
| Thar Range | Up to ₹1,35,000 |
| Thar Roxx | ₹1,33,000 |
| Scorpio Classic | ₹1,01,000 |
| Scorpio N | ₹1,45,000 |
| XUV700 | ₹1,43,000 |
Tata Motors Car Discounts
Tata Motors — Up To ₹1.55 Lakh Off
| Model | Price Drop |
| Tiago | ₹75,000 |
| Tigor | ₹80,000 |
| Altroz | ₹1,10,000 |
| Punch | ₹85,000 |
| Nexon | ₹1,55,000 |
| Harrier | ₹1,40,000 |
| Safari | ₹1,45,000 |
| Curvv | ₹65,000 |
Toyota Car Price Drops
Toyota — Maximum Savings Reach ₹3.49 Lakh
| Model | Price Drop |
| Fortuner | ₹3,49,000 |
| Legender | ₹3,34,000 |
| Hilux | ₹2,52,000 |
| Vellfire | ₹2,78,000 |
| Camry | ₹1,01,000 |
| Innova Crysta | ₹1,80,000 |
| Innova Hycross | ₹1,15,000 |
| Other Models | Up to ₹1,11,000 |
Range Rover & Premium SUVs
Range Rover — Savings Up To ₹30.4 Lakh
| Model | Price Drop |
| Range Rover 4.4P SV LWB | ₹30,40,000 |
| Range Rover 3.0D SV LWB | ₹27,40,000 |
| Range Rover 3.0P Autobiography | ₹18,30,000 |
| Range Rover Sport 4.4 SV Edition Two | ₹19,70,000 |
| Velar 2.0D/2.0P Autobiography | ₹6,00,000 |
| Evoque 2.0D/2.0P Autobiography | ₹4,60,000 |
| Defender Range | Up to ₹18,60,000 |
| Discovery | Up to ₹9,90,000 |
| Discovery Sport | ₹4,60,000 |
Kia Car Price Reductions
Kia — Up To ₹4.48 Lakh Off
| Model | Price Drop |
| Sonet | ₹1,64,471 |
| Syros | ₹1,86,003 |
| Seltos | ₹75,372 |
| Carens | ₹48,513 |
| Carens Clavis | ₹78,674 |
| Carnival | ₹4,48,000 |
Hyundai Price Cuts
Hyundai — Up To ₹2.4 Lakh Off
| Model | Price Drop |
| Grand i10 Nios | ₹73,808 |
| Aura | ₹78,465 |
| Exter | ₹89,209 |
| i20 | ₹98,053 (N-Line ₹1,08,000) |
| Venue | ₹1,23,000 (N-Line ₹1,19,000) |
| Verna | ₹60,640 |
| Creta | ₹72,145 (N-Line ₹71,762) |
| Alcazar | ₹75,376 |
| Tucson | ₹2,40,000 |
Maruti Suzuki Car Price Drops
Maruti Suzuki — Up To ₹1.3 Lakh Off
| Model | Price Drop (Up To) |
| Alto K10 | ₹1.08 lakh |
| S-Presso | ₹1.30 lakh |
| Wagon R | ₹0.80 lakh |
| Celerio | ₹0.94 lakh |
| Eeco | ₹0.60 lakh |
| Swift | ₹0.85 lakh |
| Ertiga | ₹0.47 lakh |
| Dzire | ₹0.87 lakh |
| Brezza | ₹1.12 lakh |
| Ignis | ₹0.70 lakh |
| Baleno | ₹0.86 lakh |
| Fronx | ₹1.11 lakh |
| Jimny | ₹0.52 lakh |
| Grand Vitara | ₹1.06 lakh |
| XL6 | ₹0.52 lakh |
| Invicto | ₹0.61 lakh |
Nissan Price Changes
Nissan — Up To ₹1 Lakh Off
| Model | Price Drop |
| Magnite Visia MT | Now under ₹6 lakh |
| Magnite CVT Tekna | ₹97,300 |
| Magnite CVT Tekna+ | ₹1,00,400 |
| CNG Retrofit Kit | ₹3,000 |
Honda Car Price Cuts
Honda — Up To ₹72,800 Off
| Model | Price Drop |
| Honda Amaze 2nd Gen | Up to ₹72,800 |
| Honda Amaze 3rd Gen | Up to ₹95,500 |
| Honda Elevate | Up to ₹58,400 |
| Honda City | Up to ₹57,500 |
Key Automobile Industry Insights
- Automobile industry growth is expected to accelerate as lower GST encourages higher car sales and lowers flying cost, with models in all segments becoming more accessible.
- The automobile sector is witnessing a boost, thanks to simplified taxation and improved affordability. Both hatchbacks and SUVs become easier for buyers to own and maintain, making it a win-win for buyers and brands alike.
How To Make The Most Of The GST Rate Cut
- Check the latest ex-showroom prices for your chosen model. Savings vary across variants.
- Verify the new GST price with official sources: always double-check before booking.
- Consider timing: Discounts are best for cars purchased after September 22, 2025.
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