GST 2.0: Good News for Vehicle Buyers, Automobile Manufacturers have Reduced their GST rates

GST 2.0: Across India, the festival of Navratri is not only a symbol of religious faith, but also a significant economic activity and shopping event. People across the country purchase a variety of goods on this occasion, especially vehicles. Between Navratri and Dussehra, people purchase vehicles for family and business use. It is said that this time is favorable for vehicle purchases. Consequently, the government has also passed a decision to reduce GST rates during this time.

Yes, GST 2.0 is being implemented across the country to coincide with the Navratri festival. Starting September 22, 2025, new GST rates will be implemented on various goods, reducing the prices of essential commodities. This decision will also apply to small and medium-sized vehicles.

GST 2.0
GST 2.0

GST 2.0: Automobile Companies has Drastically Decreased the Prices of SUV to Luxury

Yes, as we mentioned, the tax structure on vehicles has been revised under GST 2.0.  This new amendment is being applied specifically to small and medium-sized vehicles, meaning all vehicles previously subject to a 28% GST will now be subject to an 18% GST. This will significantly reduce vehicle prices. Additionally, the additional cess on luxury cars and SUVs has been eliminated, significantly reducing their prices. Although no changes have been made to the GST on luxury vehicles and SUVs, the abolition of the cess will provide customers with discounts worth lakhs and allow them to purchase their favorite vehicle at a lower price.

In view of the auspicious occasion of Navratri, automobile manufacturers have announced significant price reductions on various models. Navratri begins on September 22, 2025, and the new GST rates will also be implemented from that day.  Due to this, various automobile manufacturers such as Maruti Suzuki, Tata Motors, Mahindra Hyundai, and luxury vehicle manufacturers such as BMW, Mercedes-Benz, Audi, and Jaguar Land Rover have offered discounts of lakhs of rupees on their SUV models, providing vehicle buyers with discounts worth lakhs of rupees. This isn’t limited to this; during this auspicious time of Navratri, dealers are also offering financing options and EMIs for new vehicle purchases, allowing customers to easily purchase not only four-wheelers but also two-wheelers. In today’s article, we will provide you with a complete breakdown of these reductions so you can learn which companies have reduced their vehicle prices by how much.

Price Reductions by Major Automobile Companies

Maruti Suzuki: Maruti Suzuki has announced price reductions ranging from ₹51,900 to ₹129,000 on various models.  This new model includes Alto, K10, Spresso, Celerio, Swift, Baleno, Dzire, Brezza, Jimny, Ertiga XL6, Victor Eco. In this entire process, Maruti Suzuki India Limited has decided to reduce the GST benefit of 8.5% and has also decided to reduce the price of small cars.

S pressoUp to 1,29,600
Alto k10Up to 1.07,600
Celerio94100
Wagon r79600
Ignis71300
Swift84600
Beleno86100
Tour s67200
Dzire87700
Fronx1,12600
Brezza1,12 700
Grand vitara1.07,000
Jinny51900
Ertiga46400
Xl652000

Tata Motors :Tata Motors has also reduced prices of its vehicles by ₹75,000 to ₹1.45 lakh. This list includes vehicles like the Tiago, Tigor, Altroz, Punch, Nexon, Harrier, and Safari. The Nexon is seeing a price reduction of up to ₹1.55 lakh. Prices of electric vehicles have also been significantly reduced.

Tiago75000
Tigor80,000
Altroz1,10,000
Tiago NRG75,009
punch85,000
Nexon1,55,000
Harrier1,40,000
Safari1,45,000
Curvv65,000
Curvv ev65000
Tiago ev75,000
Tigor ev80,000
Nexon ev80,000
Harrier ev1,40,000
Punch ev80,000
Sierra ev65,000

Hyundai Motor :Hyundai Motor has also reduced the prices of its vehicles. As a result, Hyundai models like the Venue, Creta, Verna, and i20 are seeing a price reduction of ₹7,000 to ₹1.10 lakh. These new prices will be effective from September 22, 2025.

Grand i1073808
Aura78465
Exter89209
i2098053
Venue1,19,00
Verna60,640
Creta72,145
Tucson2,40,000
I20 n line1,08,000
Creta n line71,782

Hyundai Motor :Hyundai Motor has also reduced the prices of its vehicles. As a result, Hyundai models like the Venue, Creta, Verna, and i20 are seeing a price reduction of ₹7,000 to ₹1.10 lakh. These new prices will be effective from September 22, 2025.

Balero1,12,000
Balero neo1,21,000
Balero neo plus1,21,000
Thar1,35,000
Thar ROXX1,33,000
Xuv 3×01,40,000
Scorpio N1,45,000
Scorpio classic1,01,000
Xuv 7001,43,000
Xuv 40076,000

Other Luxury Brands

Due to GST 2.0, other luxury brands are also experiencing significant price reductions. Prices of many luxury vehicles, including Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Volvo, and other company models, have been reduced by ₹2.6 lakh to ₹30.4 lakh.

Audi has also significantly reduced the prices of its cars. The Audi A4 has seen a price reduction of up to ₹2.64 lakh, while the premium model has seen a reduction of up to ₹7.83 lakh. BMW has also reduced the price of the BMW 2 Series by ₹1.60 lakh, and the BMW X7 by a significant ₹8.90 lakh. Mercedes-Benz has also reduced prices by ₹1.95 lakh to ₹7 lakh, and Jaguar has also seen a significant price reduction of up to ₹4.1 lakh on the Range Rover.

Conclusion – GST 2.0

For readers’ information, these prices are ex-showroom prices, meaning prices may vary from region to region. Therefore, it’s important to contact your nearest dealer for on-road pricing details, as prices may vary depending on registration, insurance, and other regional taxes. However, GST 2.0 has been implemented in all states to provide significant relief to customers on ex-showroom prices. Overall, GST 2.0, which will be implemented from September 22, 2025, has significantly reduced the prices of vehicles ranging from domestic to luxury vehicles, so that customers can directly benefit from it.

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