Following the implementation of GST 2.0, cars across the country are set to become more affordable. The overall tax on passenger vehicles has been reduced based on engine capacity. Consequently, numerous car companies in India have announced price cuts on their passenger vehicles, with some expected to implement these changes before September 22nd. This report provides a comprehensive list of over 100 cars from various brands, including Maruti and Mercedes-Benz, that are slated to become more affordable.
Maruti Arena has taken the initiative by incorporating special offers alongside the GST cuts, enhancing the appeal of deals for potential buyers. Let’s examine the estimated new prices of popular Maruti Arena cars.
Tata Motors has declared that it will pass on the full benefit of the GST rate reduction to its customers. The company has reduced prices by up to ₹1.55 lakh on its different models. These new prices will be effective from September 22, 2025.
Hundai has announced price reductions for all its passenger vehicles, effective from September 22nd. The lowest cut is on the Creta N Line. The Grand i10 Nios will be cheaper by ₹73,808, while the Aura will be ₹78,465, i20 ₹98,053 and Exter ₹89,209 cheaper.
Mahindra stated that its SUV lineup will see significant cuts under the new GST rules. The XUV3XO diesel will provide the maximum benefit, with a reduction of ₹1.56 lakh.
Toyota, which sells cars like Innova and Fortuner, has also announced price reductions. The reduced prices from Toyota will be effective from September 22, 2025. Under the new GST rules, there is a maximum reduction of ₹85,300 on the Toyota Glanza, ₹1.11 lakh on the Taisar, and up to ₹48,700 on the Rumion.
Under the new GST framework, the starting price of the Renault Kwid is now ₹4.30 lakh and goes up to ₹5.90 lakh. It has seen a reduction of ₹40,095 to ₹54,995. The Renault Kiger now starts at ₹5.76 lakh for the base variant, with a reduction of ₹53,695.
MG Motor India states that it has passed on the full benefit of the reduced GST to its customers. This benefit will be applicable to all bookings made until September 7, 2025, across the country. The British brand MG currently sells three SUVs in the Indian market: Astor, Hector, and Gloster.
Volkswagen India has announced that it will pass on the full benefit of the new Goods and Services Tax (GST 2.0) to its customers. The new prices will be effective from September 22, 2025. There will be significant price cuts in Volkswagen cars. These cuts will vary depending on the different variants.
Skoda India has stated that it will pass on the GST benefit to customers, resulting in a reduction of up to ₹3.3 lakh in car prices. In addition, the company has announced special festive offers, under which an additional discount of up to ₹2.5 lakh will be available if bookings are made before September 21.
Kia has confirmed that it will pass on the full benefit of the GST rate cuts to its customers. This benefit will be available on all Kia petrol and diesel cars.
Honda Cars India Limited (HCIL) has announced that it will pass on the full benefit of the new GST rates to its customers. The new prices will be effective from September 22, 2025. This step has been taken just before the festive season, allowing buyers to benefit from both the GST-related price cuts and the ongoing festive offers.
After the new GST slab, Mercedes-Benz cars are now more affordable than before. The company has reduced prices by up to ₹11 lakh across its model range.
Audi has reduced the starting price of its Q3 SUV from ₹46.14 lakh to ₹43.07 lakh. The Audi A4 now starts at ₹46.2 lakh, which was ₹48.89 lakh earlier. The Audi Q7 now starts at ₹86.14 lakh, which was ₹92.29 lakh earlier. The reduced prices will be effective from September 22.
BMW sells 16 petrol-diesel cars in India, but it has only confirmed the GST benefit on 6 models so far. It remains to be seen whether the other BMW cars like the 7 Series, X3, M4, Z4, etc., will also get the benefit of the GST cut, and if so, how much.
