GST Slash Triggers Big Price Drops for Cars and Bikes: Tata, Mahindra, Maruti Announce Reductions up to ₹1.55 Lakh
GST Slash Triggers Big Price Drops for Cars and Bikes: Tata, Mahindra, Maruti Announce Reductions up to ₹1.55 Lakh
India’s automobile market is witnessing a major shift after the government’s revised GST rates took effect on September 22, 2025. The tax on small cars, sub-compact SUVs, and motorcycles up to 350cc has been reduced from 28% to 18%, while the additional cess on larger vehicles has been removed. This move is making cars and two-wheelers significantly more affordable, encouraging buyers and giving automakers a competitive edge.
Tata Motors
Tata Motors has rolled out substantial price cuts across its lineup. The Nexon petrol variants are now cheaper by ₹68,000 to ₹1.26 lakh, while diesel variants are down by ₹99,000 to ₹1.55 lakh. Other models such as the Tiago, Altroz, Punch, Harrier, Safari, and the new Curvv have also seen reductions between ₹65,000 and ₹1.45 lakh, depending on the variant.
Mahindra
Mahindra has announced similar cuts. The XUV300 petrol is cheaper by ₹68,000 to ₹1.35 lakh, while diesel models are down by ₹99,000 to ₹1.49 lakh. Popular SUVs like the XUV700, Scorpio N, and Thar have seen price drops of up to ₹1.50 lakh, ₹1.20 lakh, and ₹1.10 lakh respectively. The Marazzo MPV has also become more affordable by around ₹80,000.
Maruti Suzuki
Maruti Suzuki has not yet released a full revised price list, but the Brezza SUV’s tax rate has dropped from 45% to 40%, translating to savings of ₹30,000 to ₹48,000. Small cars including the Alto, WagonR, and Swift are expected to get reductions of ₹47,000 to ₹1.06 lakh under the flat 18% GST structure. The Dzire sedan could see cuts of ₹30,000 to ₹50,000.
Two-Wheelers
Motorcycles up to 350cc now attract 18% GST instead of 28%, making popular entry-level and mid-segment bikes cheaper. The timing of this reduction is expected to boost sales during the festive season.
Industry Impact
The revised GST structure simplifies taxation and makes vehicles under 4 meters with petrol engines up to 1,200cc and diesel engines up to 1,500cc more affordable. For buyers, the savings could cover fuel costs for one to two years, depending on usage.
Note: Prices may vary slightly by city, dealer policies, and variants. Buyers should confirm exact pricing with authorized dealerships before purchase.
