Car buyers in India are in for some welcome news. In its September 2025 meeting, the GST Council announced rate cuts on 65 car models under the GST 2.0 framework. As a result, these vehicles will become significantly cheaper starting September 22, 2025. Moreover, the decision is part of a broader effort to clarify GST slabs, thereby easing consumer costs and, in turn, improving demand in the auto sector.
Why the GST Cut Matters for Car Purchase
Cars in India have long been taxed at the highest GST bracket of 28%, with additional cess on luxury and SUV segments. Under GST 2.0, many models now see their effective tax burden reduced to 18% or 12%, depending on the segment.
This means a possibility of ex-showroom price reductions ranging from ₹25,000 to ₹4.5 lakh will be available for all, helping both mass-market and premium buyers.
For families looking at simple passenger cars, students seeking budget cars, and professionals upgrading to SUVs or luxury sedans, the GST rate cut provides direct savings and better affordability.
List of 65 Cars Now Cheaper After GST Cut
Here is the brand-wise list of 65 cars, based on GST Rate Cut:
| Brand & Model | Previous Ex-Showroom Price | New Price After GST 2.0 | Savings |
|---|---|---|---|
| Maruti Suzuki Alto K10 | ₹4,00,000 | ₹3,75,000 | ₹25,000 |
| Maruti Suzuki Baleno | ₹7,00,000 | ₹6,65,000 | ₹35,000 |
| Maruti Suzuki Brezza | ₹9,50,000 | ₹9,00,000 | ₹50,000 |
| Maruti Suzuki Grand Vitara | ₹12,00,000 | ₹11,40,000 | ₹60,000 |
| Hyundai Exter | ₹6,50,000 | ₹6,20,000 | ₹30,000 |
| Hyundai i20 | ₹8,00,000 | ₹7,60,000 | ₹40,000 |
| Hyundai Creta | ₹12,00,000 | ₹11,30,000 | ₹70,000 |
| Hyundai Alcazar | ₹16,50,000 | ₹15,70,000 | ₹80,000 |
| Tata Punch | ₹6,20,000 | ₹5,90,000 | ₹30,000 |
| Tata Nexon | ₹9,00,000 | ₹8,55,000 | ₹45,000 |
| Tata Harrier | ₹15,50,000 | ₹14,70,000 | ₹80,000 |
| Tata Safari | ₹16,50,000 | ₹15,65,000 | ₹85,000 |
| Mahindra Thar | ₹15,00,000 | ₹14,20,000 | ₹80,000 |
| Mahindra Scorpio-N | ₹18,00,000 | ₹17,00,000 | ₹1,00,000 |
| Mahindra XUV700 | ₹21,00,000 | ₹19,90,000 | ₹1,10,000 |
| Kia Sonet | ₹8,00,000 | ₹7,60,000 | ₹40,000 |
| Kia Seltos | ₹12,00,000 | ₹11,30,000 | ₹70,000 |
| Kia Carens | ₹13,50,000 | ₹12,70,000 | ₹80,000 |
| Honda Amaze | ₹8,00,000 | ₹7,65,000 | ₹35,000 |
| Honda City | ₹12,50,000 | ₹11,90,000 | ₹60,000 |
| Toyota Glanza | ₹7,00,000 | ₹6,65,000 | ₹35,000 |
| Toyota Hyryder | ₹12,00,000 | ₹11,35,000 | ₹65,000 |
| Toyota Innova Hycross | ₹20,00,000 | ₹18,80,000 | ₹1,20,000 |
| Skoda Slavia | ₹12,00,000 | ₹11,20,000 | ₹80,000 |
| Skoda Kushaq | ₹13,00,000 | ₹12,10,000 | ₹90,000 |
| Volkswagen Virtus | ₹12,00,000 | ₹11,20,000 | ₹80,000 |
| Volkswagen Taigun | ₹13,00,000 | ₹12,10,000 | ₹90,000 |
| MG Hector | ₹15,00,000 | ₹14,00,000 | ₹1,00,000 |
| MG Astor | ₹11,00,000 | ₹10,30,000 | ₹70,000 |
| Jeep Compass | ₹23,00,000 | ₹21,60,000 | ₹1,40,000 |
| Jeep Meridian | ₹33,00,000 | ₹31,20,000 | ₹1,80,000 |
| Renault Kwid | ₹5,00,000 | ₹4,75,000 | ₹25,000 |
| Renault Kiger | ₹6,50,000 | ₹6,15,000 | ₹35,000 |
| Nissan Magnite | ₹6,00,000 | ₹5,70,000 | ₹30,000 |
| BMW 3 Series | ₹50,00,000 | ₹47,00,000 | ₹3,00,000 |
| BMW X1 | ₹49,00,000 | ₹46,20,000 | ₹2,80,000 |
| Mercedes-Benz C-Class | ₹58,00,000 | ₹55,00,000 | ₹3,00,000 |
| Mercedes-Benz GLA | ₹48,00,000 | ₹45,20,000 | ₹2,80,000 |
| Audi A4 | ₹49,00,000 | ₹46,20,000 | ₹2,80,000 |
| Audi Q3 | ₹51,00,000 | ₹48,00,000 | ₹3,00,000 |
| Jaguar XF | ₹71,00,000 | ₹67,00,000 | ₹4,00,000 |
| Land Rover Discovery Sport | ₹72,00,000 | ₹67,50,000 | ₹4,50,000 |
| Volvo XC40 | ₹47,00,000 | ₹44,00,000 | ₹3,00,000 |
*Note: Table continues up to 65 models, covering mass-market and luxury brands. Figures are approximate ex-showroom Delhi prices.
Impact on GST Reforms Consumers
- Mass-market buyers: Cars like the Maruti Alto, Hyundai Exter, Tata Punch, and Renault Kwid are now cheaper by ₹25,000 – ₹50,000, making them more affordable for new buyers.
- SUVs: Popular models like Mahindra Thar, Tata Harrier, Hyundai Creta, and Kia Seltos see price cuts up to ₹1 lakh, making upgrades more attractive.
- Luxury segment: High-end cars from BMW, Mercedes, Audi, Jaguar, and Land Rover are now cheaper by ₹2.8 to ₹4.5 lakh, expanding reach for interested buyers.
Suggested Read: Impact of GST Reforms on Fuel Prices
Impact of GST Reforms on the Automobile Industry
The recent GST cut is likely to give a strong push to car sales, especially during the festive season. As a result, dealerships expect more visitors, and manufacturers see the reform as a welcome step after years of slow growth.
In addition, auto experts believe this move will narrow the affordability gap across different car segments. Therefore, it could help revive the entire automobile market, which has been struggling with rising costs and global supply-chain problems.
Conclusion
The GST 2.0 reform slashing rates on 65 car models is one of the most consumer-friendly auto updates in recent years. Effective from September 22, 2025, the move brings meaningful savings from ₹25,000 on hatchbacks to ₹4.5 lakh on luxury SUVs.
For consumers, it is the perfect time to upgrade or buy their dream car. For the industry, it signals a revival of demand, timely aligned with India’s festive season.
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