Price Cuts Up to ₹2.4 Lakh: Major Auto Makers Pass on GST Benefits from September 22
Major Indian automakers, including Mahindra & Mahindra, Tata Motors, and Hyundai Motor India, are set to reduce their vehicle prices starting September 22, 2025, to pass on the benefits of the new Goods and Services Tax (GST) structure. The GST Council recently rationalized tax rates, lowering GST on small cars from 28% to 18% and cutting the overall tax burden on larger cars and SUVs by removing the compensation cess and reducing slabs. These reductions, which range up to ₹2.4 lakh on select models, are expected to make cars more affordable, stimulating demand especially during the upcoming festive season. This move aligns with government efforts to promote personal mobility and boost industry growth by easing the tax load on vehicles and auto components.
Several leading automakers—Mahindra & Mahindra, Tata Motors, and Hyundai Motor India—have announced substantial price reductions of up to ₹2.4 lakh on their vehicles,
following the Indian government's recent overhaul of the Goods and Services Tax (GST) structure on automobiles. The GST Council’s decision to bring down tax rates on
passenger vehicles (including the removal of compensation cess) will take effect from September 22, 2025.
These price cuts will be passed on directly to customers across a wide range of models. Tata Motors will reduce prices on cars and SUVs such as the Tiago, Altroz,
Punch, Nexon, Harrier, and Safari by up to ₹1.55 lakh, while Mahindra is cutting prices up to ₹1.6 lakh on select models like the XUV3XO and Thar. Hyundai and Maruti
Suzuki are also finalizing similar price drops in line with the new GST structure, making personal mobility significantly more affordable, especially as the festive
season approaches.
The move is expected to stimulate demand in the automotive sector, with industry leaders projecting a potential 10% increase in small car sales for the remainder
of the financial year. Besides benefiting individual buyers with lower upfront costs, this development is likely to provide a much-needed boost to automakers after
months of stagnant or sluggish growth in the passenger vehicle market.
Summary:
Key automakers have slashed vehicle prices by up to ₹2.4 lakh to fully pass on the benefits of the revised GST regime to customers, effective September
22, 2025—a move set to make cars more affordable and rejuvenate sales across India’s automobile sector.
Several leading automakers—Mahindra & Mahindra, Tata Motors, and Hyundai Motor India—have announced substantial price reductions of up to ₹2.4 lakh on their vehicles,
following the Indian government's recent overhaul of the Goods and Services Tax (GST) structure on automobiles. The GST Council’s decision to bring down tax rates on
passenger vehicles (including the removal of compensation cess) will take effect from September 22, 2025.
These price cuts will be passed on directly to customers across a wide range of models. Tata Motors will reduce prices on cars and SUVs such as the Tiago, Altroz,
Punch, Nexon, Harrier, and Safari by up to ₹1.55 lakh, while Mahindra is cutting prices up to ₹1.6 lakh on select models like the XUV3XO and Thar. Hyundai and Maruti
Suzuki are also finalizing similar price drops in line with the new GST structure, making personal mobility significantly more affordable, especially as the festive
season approaches.
The move is expected to stimulate demand in the automotive sector, with industry leaders projecting a potential 10% increase in small car sales for the remainder
of the financial year. Besides benefiting individual buyers with lower upfront costs, this development is likely to provide a much-needed boost to automakers after
months of stagnant or sluggish growth in the passenger vehicle market.
Summary:
Key automakers have slashed vehicle prices by up to ₹2.4 lakh to fully pass on the benefits of the revised GST regime to customers, effective September
22, 2025—a move set to make cars more affordable and rejuvenate sales across India’s automobile sector.