GST rate cut passed on: Tata, Mahindra, Hyundai, Toyota, Renault and others cut prices
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GST Cuts Drive Prices Down: Indian automakers have started reducing prices after the government’s GST 2.0 reform. The GST Council, in its 56th meeting on September 3, cut passenger vehicle tax rates. Small cars now attract 18% GST instead of 28%, while larger vehicles face a flat 40% rate. The industry has passed on full benefits, cutting prices by thousands to lakhs, depending on models.
2 / 10Mahindra Price Reductions: Mahindra & Mahindra was among the first to implement cuts effective September 6. The Bolero became cheaper by ₹1.27 lakh, Scorpio by ₹1.45 lakh, Thar Roxx by ₹1.33 lakh, and XUV700 by ₹1.43 lakh. The maximum saving reached ₹1.56 lakh. The company stated that over 60% of its total volumes, including commercial vehicles, would benefit from the lower 18% GST slab.
3 / 10Tata Motors Discounts: Tata Motors will reduce prices on passenger and commercial vehicles from September 22. Passenger vehicles saw cuts up to ₹1.55 lakh, including Nexon by ₹1.55 lakh and Safari by ₹1.45 lakh. In commercial vehicles, Heavy CVs dropped by ₹2.8–4.65 lakh, Buses and Vans by ₹1.2–4.35 lakh, and Pickups by ₹30,000–1.10 lakh. Tata became the first major CV maker to pass on full GST benefits.
4 / 10Hyundai Follows Suit: Hyundai Motor India cut prices up to ₹2.40 lakh, effective September 22. The Tucson saw the highest drop of ₹2.40 lakh. The Venue became cheaper by ₹1.23 lakh, the i20 by ₹98,000, and the Alcazar by ₹75,000. Managing Director Unsoo Kim said Hyundai fully passed GST benefits to customers, with about 60% of its portfolio falling under the reduced 18% slab.
5 / 10Toyota Adjusts Prices: Toyota Kirloskar announced full GST pass-through from September 22. The Fortuner became cheaper by ₹3.49 lakh, the Legender by ₹3.34 lakh, the Hilux by ₹2.52 lakh, and the Vellfire by ₹2.78 lakh. Other reductions included ₹1.80 lakh for the Crysta and ₹1.15 lakh for the Hycross. Toyota said the reform would improve affordability and stimulate demand ahead of the festive season.
6 / 10Renault Reduces Rates: Renault India announced cuts across its lineup, effective September 22. The Kwid now starts at ₹4.29 lakh. The Triber saw savings up to ₹78,000, while the Kiger offered maximum benefits of ₹96,395 on higher variants. Managing Director Venkatram Mamillapalle said the move reflects Renault’s commitment to affordability. The announcement coincides with Navratri, aiming to boost festive demand and attract new customers.
7 / 10Škoda Offers Savings: Škoda Auto India combined GST benefits with discounts worth up to ₹2.5 lakh on select models until September 21. The Kushaq received savings up to ₹66,000 plus additional benefits, the Slavia up to ₹63,000, and the Kodiaq up to ₹3.3 lakh plus offers. However, the newly launched Kylaq was excluded. The strategy focuses on clearing inventory and boosting demand in a slow market.
8 / 10Audi Revises Prices: Audi India cut prices between ₹2.6 lakh and ₹7.8 lakh. The Q3 dropped by ₹3.07 lakh, A4 by ₹2.64 lakh, A6 by ₹3.64 lakh, and Q5 by ₹4.55 lakh. The Q7 fell by ₹6.15 lakh, while the flagship Q8 had the biggest drop at ₹7.8 lakh. Audi expects the revised pricing to attract more buyers, though competition from Mercedes and BMW remains strong.
9 / 10Mercedes Cuts Big: Mercedes-Benz India cut prices across its portfolio by ₹2.6–11 lakh. The A200d dropped by ₹2.6 lakh, E-Class LWB by ₹6 lakh, and flagship S450 by ₹11 lakh. SUVs also saw major cuts, with the GLE 450 down ₹8 lakh. The company said this would make entry-level and premium models more accessible. The timing aims to capture festive season demand.
10 / 10Market Impact Widens: Maruti Suzuki reduced prices up to ₹67,000 on models like Alto and Wagon R. Bajaj, Hero, and TVS also passed on benefits, with auto stocks gaining 11–17% since August 15. Industry experts said the reform simplifies taxes and reduces ownership costs. The festive season and lower road tax based on reduced ex-showroom prices are expected to drive strong sales across categories.
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