GST Rate Cut From September 22: Is Your Favourite Car Cheaper Already?

Car buyers have a reason to cheer as the government’s decision to reduce Goods and Services Tax (GST) on automobiles from September 22 has started translating into lower showroom prices. Several leading automakers have already revised their price lists, passing on the benefit to customers at the onset of the festive season.

The GST cut eases the tax burden on passenger vehicles, covering hatchbacks, sedans, and SUVs. For buyers, this means price reductions ranging from a few thousand rupees on entry-level cars to over Rs 1 lakh on premium models. Dealers report a surge in enquiries, with many prospective customers who had been holding back now moving quickly to close bookings.

Automakers including Tata Motors, Mahindra & Mahindra, Hyundai, Toyota, Renault, Kia, Honda, Škoda, Jeep, Volksawagen, etc.,  have passed on the benefits to customers, making the festive season an opportune time to buy a new vehicle.

Tata Motors has reduced prices across its popular models. The Nexon compact SUV now sees savings of up to Rs 1.55 lakh, while the Punch hatchback, Harrier, and Safari SUVs have also become more affordable. Mahindra & Mahindra has announced cuts on the XUV700, Thar, and Scorpio, with reductions enhancing the value of these SUVs for buyers.

Also Read: GST 2.0 Cuts Vehicle Prices: Auto Industry Hails ‘Game-Changing’ Reform | Republic World

Hyundai has revised prices for the Creta, Verna, and i20, offering reductions ranging from Rs 60,000 to over Rs 1 lakh. Toyota’s Fortuner, Innova Crysta, and Urban Cruiser Hyryder have also become more budget-friendly, with price drops making the models more competitive in their respective segments. Renault has passed on benefits to the Kwid, Kiger, and Triber, making both compact hatchbacks and family-friendly MPVs more accessible. Kia India has implemented GST reductions across its internal combustion engine lineup, with model-wise savings of up to Rs 4.48 lakh.

Adding to the wave of revisions, Honda Cars India has cut prices across its lineup, with the Amaze seeing reductions of up to Rs 95,500, the City up to Rs 57,500, and the Elevate up to Rs 58,400. Jeep India has also rolled out major price cuts, with benefits ranging from Rs 1.26 lakh on the Compass to nearly Rs 4.8 lakh on the Grand Cherokee.

Meanwhile, Škoda Auto India is offering both advance festive deals and revised post-GST prices across models like the Kushaq, Slavia, and Kodiaq, with benefits of up to Rs 3.3 lakh. Volkswagen India too has joined the list, passing on GST-linked benefits of up to Rs 3.26 lakh on models including the Virtus, Taigun, and Tiguan R-Line, along with additional promotional offers for select variants.

Puneet Gupta, Director – S&P Global Mobility, highlights that while GST cuts will give an immediate lift to car sales, sustaining this growth will depend on wider factors such as state-level tax changes and geopolitics that shape consumer confidence. “Still, the reduction is expected to draw more first-time buyers and fence-sitters, providing a strong push to overall demand,” he noted.

The auto industry has faced sluggish demand in recent quarters, with higher ownership costs and the transition to new emission norms weighing on sales. Carmakers are now betting that the combination of lower GST, festive discounts and financing offers will help accelerate volumes in the months ahead.