Auto companies including Tata Motors, Mahindra & Mahindra, Renault India, BMW and Maruti Suzuki India have announced a range of price cuts for their vehicles this festive season. This comes after the GST Council on approved rate cuts for most segments to 18 per cent, with some categories at 40 per cent.
According to a report by Kotak Institutional Equities, on-road price of most cars are expected to reduce by at least 5-8 per cent.
For passenger vehicles, which are set to see the biggest benefit with GST reduced from previous 45-50 per cent (28 per cent GST + up to 22 per cent cess depending on the type of vehicle) to a flat 40 per cent rate, Kotak expects on-road price reduction of 2-9 per cent.
The company on September 5 announced that it will cut prices of its passenger vehicles by ₹75,000 to ₹1.45 lakh, effective from September 22, by passing on the full benefit of the GST reduction to customers.
M&M on September 6 announced it will cut passenger vehicle prices up to ₹1.56 lakh to pass on the effect of the GST rate cuts to the customers. However, this price cut is only effective on the company’s Internal Combustion Engine (ICE) variants and not the electric vehicle (EV) portfolio.
Renault India on September 6 announced that its car prices will be reduced by up to ₹96,395 from September 22, “to pass on full benefit of the recent GST rate cut to buyers”. It added that the revised pricing, will be effective on all deliveries made on or after September 22, 2025; and will be applicable on bookings immediately across all dealerships nationwide.
Premium, luxury automaker BMW also announced prices cuts for its models. As per a report by CNBC-TV18, the luxury car segment, including players such as Audi, BMW, and Mercedes-Benz will see b 8–10 percent. BMW announced that its flagship X7 SUV will now cost ₹9 lakh less, passing the benefit directly to customers.
Maruti Suzuki Chairman R C Bhargava told Business Standard in an interview that he thinks the price of their Alto car could drop by ₹40,000–50,000, while the entry-level Wagon R may cost between ₹60,000 and ₹67,000 less. However, the company is yet to release any official statement on the same.
Disclaimer: This is an educational report, all prices are subject to company terms and conditions. Please check with your local dealer for latest updates.
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