From Mahindra to Maruti Suzuki: Here’s the Full List of Cars and Bikes That Got Cheaper After GST Cut
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Starting September 22, the Next Gen GST reforms announced by Finance Minister Nirmala Sitharaman have officially come into effect. The key takeaway? Buying entry-level cars and motorcycles just got a lot more affordable. Vehicles with engine capacities up to 350cc and small cars now fall under a reduced GST rate of 18%, down from the earlier 28%. This move is expected to boost sales, especially in the budget segment, where affordability is crucial. Meanwhile, high-end cars and larger bikes are now uniformly taxed at 40%, down from a complicated structure that previously pushed total taxes close to 50%. EVs, however, continue to enjoy a flat 5% tax.
Small Cars & Two-Wheelers See Big Savings
Small cars defined as those with petrol engines up to 1200cc or diesel engines up to 1500cc and a length under 4000mm now fall under the 18% GST slab. This significantly lowers the prices of popular models like the Maruti Alto K10, Tata Tiago, and Hyundai i10. Motorcycles and scooters with engines up to 350cc also benefit from this tax cut, making them more accessible for first-time buyers. The change is expected to particularly boost demand in tier 2 and tier 3 cities, where two-wheelers and compact cars dominate sales charts.
Mahindra, Tata Motors Lead the Price Slash
Tata Motors was the first to announce revised prices. The Tiago received a cut of up to ₹75,000, and the Tigor became cheaper by ₹80,000. Other models like the Altroz, Punch, Nexon, Curvv, Harrier, and Safari also saw significant drops, with some prices reduced by as much as ₹1.55 lakh. Mahindra followed closely, announcing reduced prices for the Bolero, Bolero Neo, XUV 3XO, and Thar 2WD (Diesel), all of which now fall into the 18% bracket. Larger Mahindra SUVs remain under the 40% tax slab.
Maruti Suzuki & Renault Pass On Benefits
Maruti Suzuki slashed prices on both entry level and premium offerings. The Alto K10 now starts at ₹3.69 lakh, down by ₹1.07 lakh, while the Grand Vitara received the same cut, now starting at ₹10.76 lakh. Renault also reduced prices: the Kiger’s new starting price is ₹10.33 lakh, a drop of nearly ₹96,000. Even the Kwid Climber saw an adjustment, reflecting the updated GST rates. These cuts aim to make already competitive models even more attractive in their respective segments.
Jeep Joins In With Major Reductions
Jeep India didn’t hold back either. The Compass now starts at ₹17.73 lakh, down from ₹18.99 lakh, while the Meridian’s price has been cut from ₹24.99 lakh to ₹23.33 lakh. In total, some Jeep models saw reductions of up to ₹4.84 lakh. This marks a strategic move to stay competitive in the premium SUV market amid growing demand for feature-packed, value-for money offerings. The simplified 40% GST rate for bigger vehicles has made it easier for brands to offer transparent and customer friendly pricing.
The Next Gen GST reforms have reshaped India’s automobile landscape, making small cars and two-wheelers more affordable while simplifying taxes on premium vehicles. With leading automakers swiftly passing on benefits to buyers, the reforms are expected to spark fresh demand, especially in price-sensitive segments. This shift not only boosts consumer confidence but also positions the auto industry for stronger growth in the coming months.
Small Cars & Two-Wheelers See Big Savings
Small cars defined as those with petrol engines up to 1200cc or diesel engines up to 1500cc and a length under 4000mm now fall under the 18% GST slab. This significantly lowers the prices of popular models like the Maruti Alto K10, Tata Tiago, and Hyundai i10. Motorcycles and scooters with engines up to 350cc also benefit from this tax cut, making them more accessible for first-time buyers. The change is expected to particularly boost demand in tier 2 and tier 3 cities, where two-wheelers and compact cars dominate sales charts. Mahindra, Tata Motors Lead the Price Slash
Tata Motors was the first to announce revised prices. The Tiago received a cut of up to ₹75,000, and the Tigor became cheaper by ₹80,000. Other models like the Altroz, Punch, Nexon, Curvv, Harrier, and Safari also saw significant drops, with some prices reduced by as much as ₹1.55 lakh. Mahindra followed closely, announcing reduced prices for the Bolero, Bolero Neo, XUV 3XO, and Thar 2WD (Diesel), all of which now fall into the 18% bracket. Larger Mahindra SUVs remain under the 40% tax slab.Maruti Suzuki & Renault Pass On Benefits
Maruti Suzuki slashed prices on both entry level and premium offerings. The Alto K10 now starts at ₹3.69 lakh, down by ₹1.07 lakh, while the Grand Vitara received the same cut, now starting at ₹10.76 lakh. Renault also reduced prices: the Kiger’s new starting price is ₹10.33 lakh, a drop of nearly ₹96,000. Even the Kwid Climber saw an adjustment, reflecting the updated GST rates. These cuts aim to make already competitive models even more attractive in their respective segments. Jeep Joins In With Major Reductions
Jeep India didn’t hold back either. The Compass now starts at ₹17.73 lakh, down from ₹18.99 lakh, while the Meridian’s price has been cut from ₹24.99 lakh to ₹23.33 lakh. In total, some Jeep models saw reductions of up to ₹4.84 lakh. This marks a strategic move to stay competitive in the premium SUV market amid growing demand for feature-packed, value-for money offerings. The simplified 40% GST rate for bigger vehicles has made it easier for brands to offer transparent and customer friendly pricing.The Next Gen GST reforms have reshaped India’s automobile landscape, making small cars and two-wheelers more affordable while simplifying taxes on premium vehicles. With leading automakers swiftly passing on benefits to buyers, the reforms are expected to spark fresh demand, especially in price-sensitive segments. This shift not only boosts consumer confidence but also positions the auto industry for stronger growth in the coming months.
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