Following the implementation of GST 2.0, the Indian automotive industry is experiencing a wave of price reductions. The changes in the Goods and Services Tax have resulted in lower taxes on passenger vehicles, based on their engine capacity. This has prompted several car manufacturers to adjust their prices, making cars more accessible to consumers. This report highlights the changes, detailing savings across various brands, including Maruti Suzuki and Mercedes-Benz.
Maruti Arena has enhanced 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 committed 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.