GST 2.0 Cars Price Details

GST 2.0 Decrease Cars Price Details The GST 2.0 reform, which took effect on September 22, 2025, has brought about changes in the tax rates for automobiles in India, resulting in notable price reductions across various categories:

Small cars and sub-4 meter SUVs equipped with petrol engines up to 1200cc and diesel engines up to 1500cc now have an 18% GST, a decrease from the previous 28%, leading to an approximate 5-7% reduction in on-road prices. For instance, the top variant of the Tata Punch experienced a price decrease, dropping from ₹11.95 lakh to ₹10.75 lakh in Mumbai.

Larger SUVs are now subject to a 40% GST without cess, a decrease from the previous combined tax rate of up to 45%. The Hyundai Creta saw a price reduction of approximately ₹90,000, while the Mahindra XUV700 experienced a reduction of over ₹2 lakh.

Electric vehicles continue to be taxed at the lowest rate of 5%.

Hybrid vehicles, such as the Toyota Urban Cruiser Hyryder and Maruti Grand Vitara, have seen their GST reduced from 43% to 18%.

Maruti Suzuki models, including the S-Presso, Alto K10, Swift, Dzire, Brezza, and Fronx, have experienced price cuts of up to ₹1.29 lakh.

Hyundai SUVs, such as the Tucson, saw reductions of up to ₹2.4 lakh; the Creta up to ₹72,145; and the Venue up to ₹1.24 lakh.

Mahindra vehicles have had price cuts ranging from approximately ₹1 lakh to ₹1.56 lakh.

In general, the elimination of the compensation cess and the implementation of lower GST rates have made automobiles considerably more affordable under GST 2.0, with discounts varying from tens of thousands to lakhs depending on the specific model and segment.

Following the implementation of GST 2.0 reforms, Maruti Suzuki has announced substantial price reductions on its vehicles, effective September 22, 2025. These price adjustments, which could reach up to ₹1.29 lakh, will be applied to several popular models, including:

S-Presso: Price reduction up to ₹1,29,600; with a new starting price of ₹3,49,900.

Alto K10: Price reduction of approximately ₹1,07,600; with a new starting price of ₹3,69,900.

Swift: Price reduction of ₹84,600; with a new starting price of ₹5,78,900.

Dzire: Price reduction of ₹87,700; with a new starting price of ₹6,25,600.

Brezza: Price reduction of ₹1,12,700; with a new starting price of ₹8,25,900.

Fronx: Price reduction of ₹1,12,600; with a new starting price of ₹6,84,900.

Grand Vitara: Price reduction of ₹1,07,000; with a new price of ₹10,76,500.

Ertiga: Price reduction of ₹46,400; with a starting price of ₹8,80,000.

These price reductions are mainly attributed to the decrease in the GST rate for small cars, which has been lowered from 28% to 18%, thereby making these vehicles more accessible. These price adjustments will be implemented across both Arena and Nexa showrooms throughout the country, and it is anticipated that they will stimulate sales during the upcoming festive season.

Under the new GST 2.0 tax regime, which came into effect on September 22, 2025, Mahindra cars have experienced price reductions. The revised GST rates have led to a decrease in the tax liability for Mahindra’s SUVs and cars, resulting in notable price cuts across various models.

Here are the key details regarding the GST 2.0 price adjustments for Mahindra cars:

Sub-4 meter petrol cars are now subject to an 18% GST, down from 29%, while diesel models also have an 18% GST, reduced from 31%.

SUVs exceeding 4 meters with engines larger than 1,500cc now have a flat 40% GST, a reduction from the previous rate of up to 50%.

Electric vehicles continue to be taxed at a 5% GST.

Approximate maximum price reductions (ex-showroom) for popular Mahindra models include:

Bolero/Neo: Rs 1.27 lakh

XUV3XO (Petrol): Rs 1.40 lakh

XUV3XO (Diesel): Rs 1.56 lakh

Thar 2WD (Diesel): Rs 1.35 lakh

Thar 4WD (Diesel): Rs 1.01 lakh

Scorpio Classic and Scorpio-N: approximately Rs 1.01-1.45 lakh

Thar Roxx: Rs 1.33 lakh

XUV700: Rs 1.43 lakh

New GST prices begin at approximately:

XUV 3XO: Rs 7.28 lakh ex-showroom

Scorpio Classic: Rs 12.98 lakh ex-showroom

These updated rates, passed on to consumers, make Mahindra vehicles considerably more affordable as of late September 2025, with potential savings of up to approximately Rs 1.56 lakh depending on the model and variant.