GST rate cut: From Swift to Mahindra Thar Roxx, full list of car price drops on Maruti, Mahindra, Kia, Tata,Toyota & more

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 

Tata Motors Car Discounts 

Tata Motors — Up To ₹1.55 Lakh Off 

Toyota Car Price Drops 

Toyota — Maximum Savings Reach ₹3.49 Lakh 

Range Rover & Premium SUVs 

Range Rover — Savings Up To ₹30.4 Lakh 

Kia Car Price Reductions 

Kia — Up To ₹4.48 Lakh Off 

Hyundai Price Cuts 

Hyundai — Up To ₹2.4 Lakh Off 

Maruti Suzuki Car Price Drops

Maruti Suzuki — Up To ₹1.3 Lakh Off

Nissan Price Changes 

Nissan — Up To ₹1 Lakh Off 

Honda Car Price Cuts 

Honda — Up To ₹72,800 Off 

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.