Car buyers across India can take a sigh of relief in this festive season since the GST 2.0 reforms have significantly impacted car prices. These reforms have come at a good time for the automobile sector, which has been facing a difficult time due to a slump in sales. GST 2.0 reforms mainly include a revision in Tax rates on cars.
These new tax rates have reduced the price range of all categories of cars, like for hatchbacks, the new tax slabs translate to a Rs. 40,000 saving. Whereas for the Premium Luxury SUV, the benefit translates to an unbelievable Rs. 30 Lakhs. Industry experts are already calling these tax revisions as one of the biggest price revisions in the Indian automobile sector.
Potential car buyers will find their favorite car models pinch their pockets a little less. Since companies like Maruti Suzuki to Range Rover’s high-end SUVs, and even Hyundai automobiles, customers will see substantial savings. Here’s a brand-wise breakdown of price cuts.
Tata Motors: Up to ₹1.55 Lakh Off
Tata Motors was quick to announce price reductions, with the Nexon leading the pack. Their range, from hatchbacks to SUVs, sees uniform cuts across petrol, diesel, and CNG variants.
| Model | Price Cut (₹) | New Price (₹ Lakh) |
|---|---|---|
| Tiago | 75,000 | 4.85 |
| Tigor | 80,000 | 5.50 |
| Altroz | 1.10 lakh | 6.00 |
| Punch | 85,000 | 5.75 |
| Nexon | 1.55 lakh | 6.45 |
| Curvv | 65,000 | 9.35 |
| Harrier | 1.40 lakh | 13.59 |
| Safari | 1.45 lakh | 14.54 |
Why Buy? Tata’s 5-star safety ratings and bold designs make the Nexon and Safari top picks for families. The Tiago CNG is a steal for budget buyers.
Maruti Suzuki: Up to ₹1.11 Lakh Cheaper
Maruti, India’s largest carmaker, dominates the sub-4m segment, which benefits most from the 18% GST slab. Models like the Swift and Brezza see significant reductions.
| Model | Price Cut (₹) | New Price (₹) |
|---|---|---|
| Alto K10 VXI+ AGS | 74,312 | 5.57 lakh |
| S-Presso VXI+ AGS | 73,214 | 5.49 lakh |
| Wagon R ZXI+ AGS | 81,783 | 6.85 lakh |
| Swift ZXI+ AGS | 1.03 lakh | 8.68 lakh |
| Dzire ZXI+ AGS | 1.11 lakh | 9.32 lakh |
| Brezza ZXI+ AT | 75,010 | 13.49 lakh |
| Ertiga ZXI+ AT | 71,925 | 12.94 lakh |
Why Buy? Maruti’s vast service network and fuel-efficient CNG options make it ideal for first-time buyers. The Swift remains a fun, reliable choice.
Mahindra: Up to ₹1.56 Lakh Off
Mahindra’s SUV-heavy portfolio benefits big from the cess removal. The XUV 3XO diesel sees the highest cut.
| Model | Price Cut (₹) | New Price (₹ Lakh) |
|---|---|---|
| Bolero Neo | 1.27 lakh | 8.72 |
| XUV 3XO Petrol | 1.40 lakh | 6.09 |
| XUV 3XO Diesel | 1.56 lakh | 6.93 |
| Thar | 1.35 lakh | 12.64 |
| Thar Roxx | 1.33 lakh | 11.66 |
| Scorpio Classic | 1.01 lakh | 12.58 |
| Scorpio N | 1.45 lakh | 12.39 |
| XUV700 | 1.43 lakh | 12.56 |
Why Buy? Mahindra’s rugged SUVs like the Thar and Scorpio N are perfect for adventure seekers. The XUV700 offers premium features at mid-range prices.
Hyundai: Up to ₹2.40 Lakh Savings
Hyundai’s lineup, from the Grand i10 Nios to the Tucson, gets hefty discounts. The Venue is a standout for urban SUV lovers.
| Model | Price Cut (₹) | New Price (₹ Lakh) |
|---|---|---|
| Grand i10 Nios | 73,808 | 5.19 |
| i20 | 98,053 | 6.06 |
| i20 N Line | 1.08 lakh | 7.00 |
| Venue | 1.23 lakh | 6.70 |
| Creta | 72,145 | 10.28 |
| Creta N Line | 71,762 | 12.16 |
| Alcazar | 75,376 | 14.24 |
| Tucson | 2.40 lakh | 26.59 |
Why Buy? Hyundai’s feature-rich cabins and strong resale value shine. The Creta’s ADAS and panoramic sunroof rival pricier models.
Other Brands: Toyota, Skoda, Kia, and Luxury
- Toyota: Fortuner drops by ₹3.49 lakh (new price ₹31.50 lakh), Hilux by ₹2.52 lakh (₹27.88 lakh), Innova Hycross by ₹1.15 lakh (₹24.29 lakh).
- Skoda: Kodiaq slashed by ₹3.30 lakh (new price ₹36.49 lakh), Kushaq by ₹66,000 (₹10.89 lakh). Festive offers add up to ₹2.5 lakh.
- Kia: Carnival MPV gets ₹4.48 lakh off (new price ₹36.47 lakh), Sonet by ₹1.64 lakh (₹6.35 lakh).
- Luxury Brands: BMW X7 down by ₹10 lakh (₹1.20 crore), Range Rover models up to ₹30.4 lakh cheaper (₹2.74 crore for 4.4P SV LWB).
Why Buy? Toyota’s reliability, Skoda’s European flair, and Kia’s tech-heavy cabins cater to diverse tastes. Luxury buyers get rare deals on premium models.
How GST 2.0 Impacts Your Car Purchase
The GST 2.0 reform simplifies taxes into three slabs: 18% for small cars, 40% for SUVs and luxury cars, and no cess. This means:
- Small Cars: Hatchbacks and compact sedans (e.g., Maruti Alto, Hyundai Nios) are 5-8% cheaper, saving ₹60,000-₹1.5 lakh.
- SUVs: Larger models like Creta and Scorpio N drop by ₹1-3.5 lakh due to the 40% slab.
- Luxury Cars: Prices are mostly neutral, but some models see cuts up to ₹30 lakh.
Defence personnel still get a 50% GST rebate via CSD, unchanged by GST 2.0. Used car prices may dip as new cars become more affordable, shrinking the price gap.
Why Now’s the Time to Buy
With festive season deals stacking on GST 2.0 savings, you’re getting unmatched value. Whether it’s a Tata Nexon for city commutes or a Mahindra Thar for off-road thrills, there’s a deal for every budget. Book a test drive, compare on-road prices, and grab these offers before stocks tighten. Drive smart, save big.
Conclusion
The GST 2.0 reform has made 2025 a golden year for car buyers in India, with price cuts of up to ₹30.4 lakh across brands like Tata, Maruti, Hyundai, Mahindra, and even luxury names like BMW and Range Rover. From the budget-friendly Maruti Victoris at ₹10.50 lakh to the rugged Mahindra Thar at ₹12.64 lakh, there’s never been a better time to buy. These savings, paired with festive season offers, mean you can drive home your dream car – be it a fuel-sipping hybrid, a CNG model, or a premium SUV – at unbeatable prices. Don’t wait! Visit your nearest showroom, test drive your top picks, and grab these deals before they’re gone.
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