Maruti Suzuki slashes car prices by up to ₹1.29 lakh after GST slab reduced.

Maruti Suzuki on Thursday announced that the company will pass on the full benefit of the recent reduction in GST rates on automobiles to customers by lowering vehicle prices across its portfolio.

The revised prices will come into effect from September 22, 2025, in line with the updated GST regulations and the move also coincides with the forthcoming festive season.

Entry-level cars such as the S-Presso and Alto K10 will see the steepest cuts, with reductions of up to ₹1.29 lakh and ₹1.07 lakh, respectively. SUVs like Fronx and Brezza have also seen reduction by up to ₹1.12 lakh.

Shares of Maruti Suzuki were trading at ₹15,740.00 apiece on the BSE, down 0.38% on Thursday, as of 2.20 PM.

 The tax has been reduced from 28% to 18% for small cars, including petrol, LPG, or CNG models with engine capacity up to 1,200cc and length under 4,000 mm, and diesel cars with engine capacity up to 1,500cc and length under 4,000 mm.

On the other hand, larger cars and SUVs now attract a 40% GST, covering petrol or hybrid vehicles with engine capacity above 1,200cc or length over 4,000 mm, and diesel or hybrid cars above 1,500cc.

Model-wise reduction in prices

Maruti Suzuki’s price reductions come at a crucial time for the Indian auto industry, which has seen four consecutive months of declining passenger vehicle sales as automakers regulated dispatches to dealers ahead of the announcement of the revised goods and services tax (GST) rates. A total of 321,840 vehicles were dispatched from factories to dealerships last month, an 8.8% decline from 352,921 units a year earlier, showed data issued by industry body Society of Indian Automobile Manufacturers (SIAM).

By passing on the full GST benefit, Maruti Suzuki is effectively lowering the entry price for buyers, which could help revive first-time car purchases and fleet sales. The move appears to be as one of the most anticipated ones by the industry as it may give a boost to dealerships, inventory turnover, and overall industry morale.

Maruti Suzuki India Senior Executive Officer (Marketing & Sales) Partho Banerjee, in a virtual press conference, said the company has reduced prices on small cars over and above the GST benefit of 8.5 per cent to help two-wheeler users upgrade to cars.

“There can’t be any better time than to really go for the motorization in the Indian market. And as the car penetration in India is so low, at 34 per 1,000 people, it makes it all the more compelling reason that, being a market leader, we are taking this initiative to put India on wheels,” he said.

He noted that in the next financial year, the passenger vehicle market is going to bounce back to the earlier CAGR of 6to 7 per cent.

Which models stand to benefit the most

The entry-level and compact segment cars, including S-Presso, Alto K10, Celerio, Wagon-R, and Ignis, are likely to see the largest boost in demand. Banerjee said that the move of cutting prices on entry-level cars would help the segment stabilise after volume decline in the last few years.

These models have the highest reductions, ranging from ₹71,300 to ₹1.29 lakh, making them more affordable for middle-class buyers and urban commuters.

S-Presso tops the list with a ₹1.29 lakh price cut, potentially driving strong sales among first-time car buyers. Alto K10 and Celerio, long-standing volume drivers for Maruti, also see reductions above ₹90,000.

Compact SUVs like Brezza and Fronx benefit from cuts over ₹1 lakh, helping Maruti compete with rivals in the growing SUV segment.

“The company will pass on the GST rate cut benefit on car parts used in service and maintenance to reduce the overall total cost of ownership,” Banerjee noted.

The company will also compensate its channel partners for the “strategic pricing” initiative, Banerjee said.