From Hatchbacks to SUVs, All Cars Get Price Cut Under GST 2.0

Still thinking of buying a new set of wheels? Your wait might have just paid off. GST 2.0 car prices are officially here, and they’re shaking up the entire market — from budget hatchbacks to family SUVs.

With the government slashing tax rates and removing the dreaded cess, GST 2.0 car price cut is more than great news, it’s a real-world drop in showroom tags that could save you thousands of rupees.

What’s changed under GST 2.0?

GST 2.0 is a tax tune-up, including for the auto industry.

• Until now, most cars were taxed at 28% GST, plus an extra cess that could push the total to nearly 50% for bigger SUVs.
• Under the new GST rates for cars, small petrol and diesel models now fall into an 18% slab — no extra cess.

This car price reduction 2025 can be felt by buyers, especially in their wallets.

Take Maruti Alto K10. This car’s price is expected to drop from ₹4.23 lakh to around ₹3.81 lakh. Also, Hyundai Grand i10 could slide from ₹5.98 lakh to about ₹5.51 lakh2.

Even mid-size SUVs like Hyundai Creta and Kia Seltos, which earlier witnessed a punishing 50% tax, now sit in a flat 40% GST bracket — a marked relief compared to the old tax regime.

How big is GST 2.0 price cut for hatchbacks?

If you’re waiting to get details on affordable cars GST benefits, you’ll be glad to know that hatchbacks are the clear winners.

Models like Maruti Swift, Tata Tiago, and Hyundai i20 are all experiencing drops of ₹50,000 to ₹60,000. And this is not just a token reduction, it’s the kind of new car discounts that can boost you up a trim level. It can also help cover insurance and accessories.

The latest September 2025 GST 2.0 cut also applies to compact sedans like Honda Amaze and Maruti Dzire. These cars have now become more competitive against SUVs in the same price spectrum.

GST 2.0 impact on SUV prices in 2025

Things are interesting in this category too. Big SUVs — Toyota Fortuner, Mahindra XUV700 — still have a higher 40% GST rate. But this is clearly down from the effective 50% they experienced earlier.

The removal of cess has created a cleaner, simpler tax structure. What’s more, in some cases, a few lakhs are sliced off the sticker price.

Mid-size SUVs like Creta, Seltos, and Skoda Kushaq are also benefiting from GST 2.0. Granted, the percentage drop isn’t as dramatic as we’ve seen for hatchbacks. But absolute savings are larger because of the higher base price.

Does all this make 2025 the best time to buy a car?

With the GST reduced on cars, dealers are expected to reap the benefit quickly, especially ahead of festive season.

Combine that with existing year-end offers, and you’re looking at a rare overlap of tax cuts and showroom deals — the “perfect storm” for buyers waiting for the best time to buy a car in 2025.

Industry insiders have additionally stated that GST 2.0 could revive demand in segments that had previously slowed. This could be particularly true for small cars, which have been losing ground to SUVs these past few years.

All Cars Price Cut Under GST 2.0: Important Notes for Buyers

• Act before demand spikes: Once word spreads, popular models could witness longer waiting periods.
• Compare across segments: With GST 2.0 car prices narrowing the gap, you might find an SUV within reach of your hatchback budget.
• Watch for dealer add-ons: Some may try to offset discounts with accessories or handling charges — negotiate smart.

GST 2.0 car price cut isn’t just a policy modification, it’s a market reset. Whether you’re after a city-friendly hatchback or a highway-cruising SUV, the math has shifted in your favor. And in a year where every rupee counts, this is news worth driving home.