In a major boost for car buyers, India’s leading automakers have announced substantial price cuts across their vehicle lineups, following the government’s implementation of GST 2.0. The reform, effective from today (22 September 2025), reduces the GST rate on small cars from 28% to 18%, resulting in significant savings for consumers and making car ownership more affordable across the country.
Industry experts believe that these reductions, timed ahead of the festive season, could drive higher sales volumes while enhancing competition in the passenger vehicle segment.
Maruti Suzuki has taken the lead in implementing the price adjustment. Popular models such as the Alto K10, Swift, Dzire, Brezza, and S-Presso have seen reductions ranging from ₹46,400 to ₹1,29,600. The company aims to strengthen its dominance in the Indian market while offering buyers greater financial flexibility.
Other manufacturers have also responded to the GST revision.
Kia India has announced savings of up to ₹4.48 lakh on models such as the Carnival, Syros, and Sonet.
Mahindra & Mahindra has slashed prices on vehicles, including the XUV 3XO, Thar range, and Scorpio, with reductions reaching up to ₹1.56 lakh.
Tata Motors has lowered prices on popular models like the Nexon, Harrier, and Safari, with maximum savings of up to ₹1.55 lakh.
The benefits of GST 2.0 extend beyond mass-market vehicles. Toyota has slashed prices on models including the Fortuner, Hilux, and Vellfire, with discounts up to ₹3.49 lakh, while Range Rover has reduced costs on its flagship models by as much as ₹30.4 lakh. Skoda and Hyundai have also announced significant cuts, alongside Renault, Nissan, and Maruti Suzuki’s broader lineup.
Analysts note that these strategic price cuts are likely to stimulate demand during the festive season, a key sales period for automakers. By passing on tax benefits to consumers, companies are not only improving affordability but also reinforcing their competitive position in an increasingly crowded market.
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