The Indian car market is witnessing significant price reductions as GST 2.0 is implemented. This shift has led to a decrease in the overall tax on passenger vehicles, varying by engine capacity. Consequently, multiple automotive companies are adjusting their prices, offering consumers more affordable options. This report examines the price adjustments across a range of brands, from Maruti Suzuki to Mercedes-Benz, outlining the savings available.
Maruti Arena is enhancing its offerings by integrating GST reductions with festive promotions, making deals more attractive. The report showcases estimated new prices for popular Maruti Arena models.
Tata Motors has stated its commitment to transferring the complete GST reduction benefit to its customers. Price cuts of up to ₹1.55 lakh have been implemented across different models, effective from September 22, 2025.
Hundai has announced price cuts for its passenger vehicles, taking effect from September 22nd. The Creta N Line sees the smallest reduction. The Grand i10 Nios is set to be ₹73,808 cheaper, Aura ₹78,465, i20 ₹98,053 and Exter ₹89,209 cheaper.
Mahindra has announced that its SUV lineup will benefit from price cuts under the new GST rules, with the XUV3XO diesel model offering the highest savings of ₹1.56 lakh.
Toyota, with models like Innova and Fortuner, has also reduced prices, effective from September 22, 2025. The Glanza sees a maximum reduction of ₹85,300, the Taisar ₹1.11 lakh, and the Rumion up to ₹48,700.
Under the new GST framework, the Renault Kwid’s starting price is now ₹4.30 lakh and goes up to ₹5.90 lakh, with reductions ranging from ₹40,095 to ₹54,995. The Renault Kiger’s base variant starts at ₹5.76 lakh, with a reduction of ₹53,695.
MG Motor India confirmed that it has extended the full GST reduction benefit to its customers, applicable to all bookings made until September 7, 2025, nationwide. The company currently sells three SUVs in the Indian market: Aster, Hector, and Gloster.
Volkswagen India confirmed it will pass on the full GST 2.0 benefits to its customers, with new prices effective from September 22, 2025. The price adjustments will vary across different vehicle variants.
Skoda India has confirmed that it will pass on the GST benefit to customers, leading to price cuts of up to ₹3.3 lakh. In addition, festive offers provide up to ₹2.5 lakh discounts for bookings made before September 21.
Kia has assured that customers will receive the full benefit of GST rate cuts across all petrol and diesel vehicles.
Honda Cars India Limited (HCIL) has declared that it will pass on the full benefit of the new GST rates to its customers. The new prices will be effective from September 22, 2025. This step coincides with the festive season, offering buyers both GST-related price reductions and current festive promotions.
Mercedes-Benz models have become more affordable due to the new GST slab, with price reductions up to ₹11 lakh across its range.
Audi has reduced the starting price of its Q3 SUV from ₹46.14 lakh to ₹43.07 lakh. The Audi A4 now starts at ₹46.2 lakh, which was ₹48.89 lakh earlier. The Audi Q7 now starts at ₹86.14 lakh, which was ₹92.29 lakh earlier. The reduced prices will be effective from September 22.
BMW has confirmed GST benefits on only six of its 16 petrol-diesel car models sold in India. The application of GST cuts to other models such as the 7 Series, X3, M4, and Z4 remains uncertain.
