Attention car buyers! Big news from the Indian auto market – the GST 2.0 reform, announced on September 3, 2025, has slashed car prices across the board. From budget hatchbacks to premium SUVs, brands like Tata, Maruti, Hyundai, and Mahindra are passing on massive savings, ranging from ₹65,000 to ₹8.9 lakh. As an automotive analyst with over 15 years of tracking India’s car industry, I’ve dug into the details to bring you the latest on how these tax changes affect your next car purchase. Ready to save big? Let’s break down the new prices, top deals, and what GST 2.0 means for you.
What exactly is GST 2.0 and why is it important?
The Goods and Services Tax (GST) 2.0, rolled out after the 56th GST Council meeting, simplifies car taxes and cuts costs. Small cars (under 4 meters, up to 1200cc) now face an 18% GST, down from 28% plus cess. Larger SUVs and luxury cars get a flat 40% GST, replacing the older 28% GST plus 15-22% cess. The removal of cess is the game-changer, making even premium models more affordable. Effective from September 22, 2025, these changes are boosting sales just in time for the festive season.
Why bother? Lower taxes mean lower showroom prices. Whether you’re eyeing a Maruti Swift or a Mahindra Scorpio N, you’re saving lakhs. Plus, brands are competing to pass on full benefits, so now’s a great time to buy.
New Car Prices After GST 2.0: Brand-Wise Breakdown
Here’s a detailed look at the price cuts across top brands – Tata, Maruti, Hyundai, Mahindra, and more. Prices are ex-showroom, effective from September 22, 2025, unless stated otherwise. On-road prices vary by city, so check with dealers.
Tata Motors: Up to ₹1.55 Lakh Off
Tata Motors was quick to announce price reductions, with the Nexon leading the pack. Their range, from hatchbacks to SUVs, sees uniform cuts across petrol, diesel, and CNG variants.
Why Buy? Tata’s 5-star safety ratings and bold designs make the Nexon and Safari top picks for families. The Tiago CNG is a steal for budget buyers.
Maruti Suzuki: Up to ₹1.11 Lakh Cheaper
India’s largest automaker, Maruti, dominates the sub-4 million market, which reaps the greatest benefits from the 18% GST slab. Models like the Swift and Brezza see significant reductions.
Why Buy? Maruti’s vast service network and fuel-efficient CNG options make it ideal for first-time buyers. The Swift is still a fun and dependable option. Hyundai: Up to ₹2.40 Lakh Savings
Hyundai’s lineup, from the Grand i10 Nios to the Tucson, gets hefty discounts. The Venue is a standout for urban SUV lovers.
Why Buy? Hyundai’s feature-rich cabins and strong resale value shine. The Creta’s panoramic sunroof and ADAS rival those of more expensive models. Mahindra: Up to ₹1.56 Lakh Off
Mahindra’s SUV-heavy portfolio benefits big from the cess removal. The XUV 3XO diesel sees the highest cut.
Why Buy? Mahindra’s rugged SUVs like the Thar and Scorpio N are perfect for adventure seekers. The XUV700 offers premium features at mid-range prices.
Other Brands: Toyota, Skoda, Kia, and Luxury
Toyota: Fortuner drops by ₹3.49 lakh (new price ₹31.50 lakh), Hilux by ₹2.52 lakh (₹27.88 lakh), Innova Hycross by ₹1.15 lakh (₹24.29 lakh).
Skoda: Kodiaq slashed by ₹3.30 lakh (new price ₹36.49 lakh), Kushaq by ₹66,000 (₹10.89 lakh). Festive offers add up to ₹2.5 lakh.
Kia: Carnival MPV gets ₹4.48 lakh off (new price ₹36.47 lakh), Sonet by ₹1.64 lakh (₹6.35 lakh).
Luxury Brands: BMW X7 down by ₹10 lakh (₹1.20 crore), Range Rover models up to ₹30.4 lakh cheaper (₹2.74 crore for 4.4P SV LWB).
Why Buy? Toyota’s reliability, Skoda’s European flair, and Kia’s tech-heavy cabins cater to diverse tastes. Luxury buyers get rare deals on premium models.
How GST 2.0 Impacts Your Car Purchase
The GST 2.0 reform simplifies taxes into three slabs: 18% for small cars, 40% for SUVs and luxury cars, and no cess. This entails: Small Cars: Hatchbacks and compact sedans, such as the Maruti Alto and Hyundai Nios, are between 60,000 and 1.5 lakh rupees cheaper. SUVs: Due to the 40% reduction, larger models like the Creta and Scorpio N cost between 1-3.05 lakhs less. Luxury Cars: Prices are mostly neutral, but some models see cuts up to ₹30 lakh.
As of GST 2.0, defense personnel continue to receive a 50% GST rebate through CSD. Used car prices may dip as new cars become more affordable, shrinking the price gap.
FAQs on GST 2.0 Car Prices
Which cars got the biggest price cuts under GST 2.0? The Kia Carnival costs 4.48 lakhs, the Toyota Fortuner costs 3.49 lakhs, and Range Rover models cost up to 30.4 lakhs. How much cheaper is the Maruti Swift now? The Swift ZXI+ AGS is now priced at 8.68 lakh (ex-showroom), which is a savings of 1.03 lakh. When do the new prices take effect? September 22, 2025, for the majority of brands. Some, like Tata and Mahindra, started earlier (September 6-8).
Does GST 2.0 affect CNG cars? Yes, CNG models like Maruti’s S-CNG and Tata Tiago CNG benefit from the 18% GST slab, with cuts up to ₹1.11 lakh.
Are luxury cars cheaper now? Some, like BMW X7 (₹10 lakh off) and Range Rover (up to ₹30.4 lakh off), see big drops, but others may stay neutral due to the 40% slab.
Why Now’s the Time to Buy
With festive season deals stacking on GST 2.0 savings, you’re getting unmatched value. Whether it’s a Tata Nexon for city commutes or a Mahindra Thar for off-road thrills, there’s a deal for every budget. Book a test drive, compare on-road prices, and grab these offers before stocks tighten. Drive smart, save big.
Conclusion
With price reductions of up to 30.4 lakh across brands like Tata, Maruti, Hyundai, Mahindra, and even luxury names like BMW and Range Rover, the GST 2.0 reform has made 2025 a golden year for Indian car buyers. From the budget-friendly Maruti Victoris at ₹10.50 lakh to the rugged Mahindra Thar at ₹12.64 lakh, there’s never been a better time to buy. These savings, paired with festive season offers, mean you can drive home your dream car – be it a fuel-sipping hybrid, a CNG model, or a premium SUV – at unbeatable prices. Don’t delay! Visit your nearest showroom, test drive your top picks, and grab these deals before they’re gone.
