GST 2.0 Car Price Cuts Explained: Full Brand-Wise List for Buyers

GST 2.0 car price cuts in India. See brand-wise list of discounts, new GST rates, and how it impacts buyers across segments.

GST 2.0 Car Price Cuts Explained

If you have been waiting to buy a new car, the timing just got better. The government has rolled out a new GST structure, popularly called GST 2.0 Car Price cuts, which became effective from 22 September 2025. This update has made cars more affordable across different segments, from entry-level hatchbacks to premium SUVs.

What Changed Under GST 2.0?

Earlier, car buyers had to deal with a complicated tax system. Cars attracted 28% GST plus an additional cess, which pushed the total tax rate close to 45–50% for many vehicles. This was one of the key reasons why cars in India felt costlier compared to other markets.

Now, GST 2.0 has simplified the structure into just two main categories:

• 18% GST – for small cars (sub-4m) with petrol/CNG/LPG engines under 1200cc or diesel engines under 1500cc.
• 40% GST – for larger vehicles with bigger engines and SUVs above 4 meters.

This simplification has reduced ex-showroom prices significantly and made the overall pricing structure easier to understand.

Why It Matters for Buyers

The most obvious benefit is lower car prices. Smaller hatchbacks and compact SUVs now come with noticeable reductions, making them even more attractive for budget-conscious buyers. Premium SUVs and luxury cars also see big cuts, although the percentage varies from brand to brand.

This also means buyers planning festive season purchases can combine GST benefits with ongoing dealer discounts for extra savings.

Brand-Wise Price Reduction List

Here’s a detailed breakdown of how much prices have dropped across different manufacturers:

Tata Motors

• Nexon: ₹1.55 lakh
• Safari: ₹1.45 lakh
• Harrier: ₹1.40 lakh
• Altroz: ₹1.10 lakh
• Punch: ₹85,000
• Tigor: ₹80,000
• Tiago: ₹75,000
• Curvv: ₹65,000

Mahindra & Mahindra

• XUV3XO Diesel: ₹1.56 lakh
• Scorpio N: ₹1.45 lakh
• XUV3XO Petrol: ₹1.40 lakh
• Thar 2WD: ₹1.35 lakh
• Bolero/Neo: ₹1.27 lakh
• Thar 4WD: ₹1.01 lakh
• Scorpio Classic: ₹1.01 lakh

Maruti Suzuki

• S-Presso: ₹1.29 lakh
• Brezza: ₹1.12 lakh
• Fronx: ₹1.12 lakh
• Alto K10: ₹1.07 lakh
• Grand Vitara: ₹1.07 lakh
• Dzire: ₹87,700
• Swift: ₹84,600
• Ertiga: ₹46,400

Hyundai

• Venue: ₹1.23 lakh
• Venue N-Line: ₹1.19 lakh
• Tucson: ₹2.40 lakh
• Alcazar: ₹75,000
• Creta: ₹72,000
• Creta N-Line: ₹71,000

Toyota

• Fortuner: ₹3.49 lakh
• Legender: ₹3.34 lakh
• Vellfire: ₹2.78 lakh
• Hilux: ₹2.52 lakh
• Innova Crysta: ₹1.80 lakh
• Innova Hycross: ₹1.15 lakh
• Hyryder: ₹1.10 lakh
• Camry: ₹1.01 lakh

Kia

• Carnival: ₹4.48 lakh
• Syros: ₹1.86 lakh
• Sonet: ₹1.64 lakh
• Carens Clavis: ₹78,000
• Seltos: ₹75,000
• Carens: ₹48,000

Honda

• Amaze: ₹95,500
• Elevate: ₹58,400
• City: ₹57,500

Volkswagen

• Tiguan R-Line: ₹3.26 lakh
• Taigun: ₹68,400
• Virtus: ₹66,900

Skoda

• Kodiaq: ₹3.30 lakh
• Kylaq: ₹1.19 lakh
• Kushaq: ₹66,000

MG Motor

• Gloster: ₹3.04 lakh
• Hector: ₹1.49 lakh
• Astor: ₹54,000

Luxury Segment Highlights

• Land Rover Range Rover: ₹30.40 lakh
• Lexus LX 500d: ₹20.80 lakh
• Jeep Wrangler: ₹4.84 lakh
• BMW X1 Diesel: ₹3.75 lakh
• Mercedes E-Class: ₹5.30 lakh
• Audi Q8: ₹8.00 lakh

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Two-Wheelers and EVs

For two-wheeler buyers, GST 2.0 has mixed outcomes:

• Bikes under 350cc – Cheaper now, with 18% GST applied.
• Bikes above 350cc – Get more expensive, due to the 40% GST rate.
• Electric Vehicles – Continue to enjoy the existing 5% GST benefit, keeping them affordable.

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Final Thoughts

The new GST 2.0 Car Price Cuts reform is a big relief for Indian car buyers. From small cars like the Alto and Tiago to premium SUVs like the Fortuner and Carnival, every category has received some benefit. For luxury car buyers, the savings run into several lakhs.

If you are planning to buy a new car, this is the right time. Combine GST benefits with festive season offers for maximum savings. For variant-specific prices and the latest deals, check with your nearest dealership or visit official brand websites such as Maruti Suzuki, Hyundai India, and Tata Motors.

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FAQs on GST 2.0 Car Price Cuts

Q1. From when are the new GST car prices effective?
The revised prices are effective from 22 September 2025.

Q2. Which cars get the maximum price cuts?
Luxury SUVs and premium sedans such as the Toyota Fortuner, Kia Carnival, and Audi Q8 have the biggest cuts, ranging from ₹3–8 lakh. Some luxury cars like the Range Rover see over ₹30 lakh in savings.

Q3. Are small cars also cheaper now?
Yes, hatchbacks and compact SUVs like the Alto, Swift, and Nexon have seen cuts between ₹75,000 to ₹1.5 lakh.

Q4. Do electric cars get any GST change?
No, EVs continue to attract 5% GST, keeping them the most affordable option.

Q5. Will two-wheeler prices also change?
Yes, smaller bikes under 350cc are cheaper, while larger motorcycles above 350cc are now taxed at 40% and costlier.

For the most accurate and variant-wise pricing, it’s always a good idea to check the official manufacturer websites or visit a local dealership. You can find a consolidated list of official sites on platforms like CarDekho.

Read more

GST 2.0 Car Price Cut: Maruti Suzuki Slashes Rates by Up to ₹1.29 Lakh, Big Boost for Small Cars

GST Reduction 2025: Car & Bike Prices Drop in India – Full Savings Guide