GST Price Cut 2025, GST Price Cut for Cars 2025: In a significant boost to India's automotive industry, the government’s recent GST rate rationalisation,
effective from September 22, 2025, has prompted major car and two-wheeler manufacturers to slash prices across their portfolios. From mass-market leaders like Maruti Suzuki and Tata Motors to luxury brands such as Mercedes-Benz and BMW, companies are passing on the tax benefits to customers, making vehicles more affordable. GST Rate Cut Sparks Price Reductions in Auto Industry Luxury carmakers Mercedes-Benz and BMW as well as two-wheeler makers are set to reduce prices with new GST coming into force from September 22. Maruti Suzuki Leads with Significant Price Cuts Maruti Suzuki India, the country's largest carmaker, has cut vehicle prices by up to Rs 1.29 lakh to pass on the GST rate cut benefit to customers. The company has also decided to cut prices of its small cars over and above the GST benefit of 8.5 per cent to make vehicles attractive for two-wheeler users to switch to four-wheelers. Price Reductions Across Maruti Suzuki Models The prices of entry-level model S Presso will go down by up to Rs 1,29,600; Alto K10 by up to Rs 1,07,600; Celerio by Rs 94,100; Wagon-R by up to Rs 79,600 and Ignis by up to Rs 71,300. Price of premium hatchback Swift is reduced by up to Rs 84,600; Baleno by up to Rs 86,100; Tour S by up to Rs 67,200; Dzire by up to Rs 87,700; Fronx by up to Rs 1,12,600; Brezza by up to Rs 1,12,700; Grand Vitara by up to Rs 1.07 lakh; Jimny by up to Rs 51,900; Ertiga by up to Rs 46,400 and XL6 by up to Rs 52,000. Similarly, prices of Invicto will reduce by up to Rs 61,700; Eeco by up to Rs 68,000 and Super Carry LCV by up to Rs 52,100. Tata Motors Announces Price Reductions Prices of Tata Motors' passenger vehicles will see a dip of Rs 75,000 to Rs 1.45 lakh effective September 22. The price of Mumbai-based company's compact SUV Punch will come down by Rs 85,000 and that of Nexon by Rs 1.55 lakh. Mid-sized model Curvv would also see a price cut of Rs 65,000. Similarly, prices of the company's premium SUVs - Harrier and Safari, wll see a price reduction of Rs 1.4 lakh and Rs 1.45 lakh, respectively. Mahindra & Mahindra Slashes Prices Mahindra & Mahindra has already enforced a price cut of up to Rs 1.56 lakh on its passenger vehicle range. The company has reduced price of Bolero/Neo range by Rs 1.27 lakh, XUV3XO (petrol) by Rs 1.4 lakh, XUV3XO (diesel) by Rs 1.56 lakh, THAR 2WD (diesel) by Rs 1.35 lakh, THAR 4WD (diesel) by Rs 1.01 lakh and Scorpio Classic by Rs 1.01 lakh. Hyundai and Honda Follow Suit Price cut on Hyundai cars ranges between Rs 60,640 on Verna to Rs 2.4 lakh on premium SUV Tucson. Honda will reduce prices of compact sedan Amaze by up to Rs 95,500, City by Rs 57,500 and Elevate by Rs 58,400 with effect from September 22. Kia and Toyota Announce Major Reductions Similarly, Kia India will be reducing prices of its vehicles by up to Rs 4.48 lakh. Toyota Kirloskar Motor cars will see a price reduction of up to Rs 3.49 lakh effective Monday. Luxury Carmakers Join the Trend Mercedes-Benz Luxury car market leader Mercedes-Benz has announced price cuts ranging from Rs 2 lakh (A-Class) to Rs 10 lakh (S-Class) due to GST rate rationalisation. BMW and Mini BMW Motor India has announced price reductions of up to Rs 13.6 lakh across its India portfolio, which also includes Mini range. Audi Similarly, Audi has announced a price cut of Rs 2.6 lakh to over Rs 7.8 lakh in India across models. Jaguar Land Rover Jaguar Land Rover (JLR) has already cut vehicle prices ranging between Rs 4.5 lakh and Rs 30.4 lakh. Two-Wheeler Segment Sees Price Drops In the two-wheeler space Hero MotoCorp bikes and scooters will see a price cut of up to Rs 15,743. Prices of Honda Motorcycle & Scooter India's model range of up to 350 cc would come down by up to Rs 18,800.
