Volvo Car India has announced significant price cuts on its internal combustion engine (ICE) models following the rollout of the new GST 2.0 regime. The
revised pricing, effective from September 22, 2025, brings down the cost of the company’s flagship SUVs, the XC60 and XC90, by up to Rs 6.9 lakh. Under the updated GST framework, vehicles longer than 4,000 mm with petrol engines above 1,200 cc or diesel engines above 1,500 cc will be taxed at 40 percent. Although this is the highest slab in GST 2.0, it is lower than the earlier structure of 28 percent GST plus a 17–22 percent compensation cess. The change has directly translated into lower ex-showroom prices for large premium cars and SUVs. Also Read: India-Made Suzuki e Vitara Scores 4 Stars In Euro NCAP: Complete Details For Volvo, the XC60 now costs Rs 67.10 lakh, down from Rs 71.90 lakh: a reduction of Rs 4.79 lakh. The XC90 has seen the biggest cut, dropping from Rs 1.03 crore to Rs 96.90 lakh, a decrease of Rs 6.92 lakh. While electric vehicles remain unaffected by the tax change, as the GST rate on EVs continues at 5 percent, Volvo has confirmed festive season benefits on its EV lineup. The offers apply to the EX40 and EC40, although no direct price cut has been announced under GST 2.0 for these models.
