Indian Automobile Market Sees Huge Price Drops After GST 2.0 – Model-Wise Breakdown
Car Price Cuts in India After GST 2.0 – The Indian car market is undergoing one of the biggest overhauls in recent years, courtesy of the implementation of GST 2.0. As the new two-slab taxation system kick started from 22 September 2025, car prices across the board — from budget hatchbacks to high-end SUVs — have witnessed big reductions.
For consumers, this is a golden chance. Automobiles are not just getting cheaper, but the timing is also right during India’s festive season when auto sales normally get a major boost. Let’s dive deeper into how GST 2.0 is revolutionizing the auto business, and what models now provide the maximum savings.
Car prices slashed across India after GST 2.0 – from Hyundai and Tata to Mercedes and BMW
GST 2.0
On September 3, 2025, in its 56th meeting, the GST Council, led by Finance Minister Nirmala Sitharaman, launched a two-rate system of 5% and 18% GST, shifting from the previous complicated multi-slab arrangement.
For the automobile industry, this translates to:
- Petrol vehicles up to 1,200cc and length below 4m now belong to the 18% GST category.
- Diesel vehicles up to 1,500cc and length below 4m also belong to the 18% category.
This new streamlined structure comes through in outright price cuts for small cars and SUVs — the market that accounts for the majority of India’s car sales.
Big cars, high-end SUVs, and luxury sedans have also experienced significant cuts, as manufacturers promptly reflected the new prices to buyers.
Small Cars: The Biggest Gainers
Small vehicles and sub-4 meter SUVs rule India’s automobile market. With GST 2.0, the affordability aspect becomes even more better, which is expected to revive demand in urban and rural markets as well.
Hyundai Price Reductions (Up to ₹2.4 Lakh Discount)
- Grand i10 Nios: ₹73,808 cheaper
- Aura: ₹78,465 cheaper
- Exter: ₹89,209 reduced
- i20: ₹98,053 reduced
- i20 N-Line: ₹1.08 lakh cheaper
- Venue: ₹1.23 lakh reduced (₹1.19 lakh for N-Line)
- Creta: ₹72,145 reduced
- Creta N-Line: ₹71,762 cheaper
- Alcazar: ₹75,376 reduced
- Tucson: ₹2.4 lakh cheaper
Tata Motors Price Reductions (Up to ₹1.55 Lakh Off)
- Tiago: ₹75,000 less
- Tigor: ₹80,000 less
- Altroz: ₹1.10 lakh less
- Punch: ₹85,000 less
- Nexon: ₹1.55 lakh less
- Harrier: ₹1.40 lakh less
- Safari: ₹1.45 lakh less
- Curvv: ₹65,000 less
Mahindra Discounts (Up to ₹1.56 Lakh Off)
- Bolero Neo: ₹1.27 lakh less
- XUV 3XO: ₹1.40 lakh (petrol), ₹1.56 lakh (diesel) less
- Thar range: Up to ₹1.35 lakh less
- Thar Roxx: ₹1.33 lakh less
- Scorpio Classic: ₹1.01 lakh less
- Scorpio N: ₹1.45 lakh less
- XUV700: ₹1.43 lakh less
Mid-size & Premium SUVs: Broader Reach
GST reform has also increased the appeal of premium SUVs and MPVs.
Toyota Offers (Upto ₹3.49 Lakh Off)
- Fortuner: ₹3.49 lakh reduced
- Legender: ₹3.34 lakh discounted
- Hilux: ₹2.52 lakh discounted
- Vellfire: ₹2.78 lakh reduced
- Camry: ₹1.01 lakh discounted
- Innova Crysta: ₹1.80 lakh reduced
- Innova Hycross: ₹1.15 lakh discounted
Renault Price Discounts
- Kiger: Upto ₹96,395 lower
Skoda Offers (With Festive Benefits)
- Kodiaq: ₹3.3 lakh GST reduction + ₹2.5 lakh festive discount = ₹5.8 lakh overall savings
- Kushaq: ₹66,000 GST reduction + ₹2.5 lakh festive discount
- Slavia: ₹63,000 GST reduction + ₹1.2 lakh festive discount = ₹1.8 lakh overall savings
Luxury Cars: High Savings for Premium Buyers
Even luxury carmakers such as BMW and Mercedes-Benz have adjusted their pricing.
Mercedes-Benz Price Reductions (₹2.6 Lakh – ₹11 Lakh Off)
- S-Class S 450 4MATIC: ₹11 lakh lower
- GLS 450d AMG Line: ₹10 lakh reduction
- GLE 450 4MATIC: ₹8 lakh reduction
- E-Class LWB 450 4MATIC: ₹6 lakh reduced
- GLC 300 4MATIC: ₹5.3 lakh reduced
- GLA 220d 4MATIC AMG Line: ₹3.8 lakh reduction
- C 300 AMG Line: ₹3.7 lakh reduced
- A 200d: ₹2.6 lakh reduced
BMW Price Cuts (Up to ₹8.9 Lakh Off)
- 2 Series Gran Coupe: ₹45.3 lakh
- 3 Series LWB: ₹60.5 lakh
- 5 Series LWB: ₹72.4 lakh
- X1: ₹50.6 lakh
Best Time to Buy: With immediate reductions and festive offers, buyers can save lakhs across segments.
Greater Choice: From hatchbacks to luxury sedans, GST 2.0 makes models more accessible.
Market Boost: Automakers expect a surge in demand, especially in rural and semi-urban India.
If you’re planning a new purchase, this festive season could be the most rewarding time in recent memory to bring home a new car.
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