Mahindra to Maruti Suzuki: Full list of cars, bikes that get cheaper after GST tax cut

By Admin

22 Sep, 2025

The automobile industry has received a big boost with the recent reforms under the Goods and Services Tax (GST). The Next Gen GST reforms, announced by Finance Minister Nirmala Sitharaman earlier this month, officially came into effect on September 22. These reforms have significantly reduced taxes on entry-level vehicles, making them more affordable for Indian consumers.

GST Tax Reforms for Automobiles

As per the revised structure:

• Vehicles and two-wheelers with engines up to 350cc have moved from the 28% tax slab to 18%.
  
  

• Small cars (petrol engines up to 1200cc, diesel engines up to 1500cc, and length under 4000 mm) are now taxed at 18% GST instead of 28%. Popular models like the Maruti Alto and Hyundai i10 fall into this category.
  
  

• Bigger cars and two-wheelers above 350cc are placed under a 40% slab. Previously, these attracted 28% GST plus up to 22% cess, totaling nearly 50%. The revised slab simplifies this into a flat 40% rate.
  
  

• Electric vehicles (EVs) will continue to enjoy the lowest rate of 5% GST, promoting clean and sustainable mobility.
  
  

This restructuring not only reduces the cost of ownership for entry-level vehicles but also encourages mass adoption, especially among middle-class buyers.

Car Companies Announce Price Reductions

Following the announcement, leading automobile manufacturers swiftly revised their price lists, passing on the benefits of the GST cut to customers.

Tata Motors

Tata Motors was the first automaker to announce price cuts of up to ₹1.55 lakh.

• Tiago: Cheaper by up to ₹75,000
  
  

• Tigor: Reduced by up to ₹80,000
  
  

• Other models with revised prices include Altroz, Punch, Nexon, Curvv, Harrier, and Safari.
  
  

Mahindra

Mahindra, known for its strong SUV lineup, has also announced revised prices.

• Models like Bolero, Bolero Neo, XUV 3XO, and Thar 2WD (Diesel) now fall in the 18% tax bracket.
  
  

• Larger SUVs remain under the 40% slab.
  
  

Maruti Suzuki

Maruti Suzuki has made significant cuts to keep its popular cars within reach of buyers.

• Alto K10: Now cheaper by ₹1,07,600, priced at ₹3,69,900.
  
  

• Grand Vitara: Also reduced by the same amount, now at ₹10,76,500.
  
  

Renault

Renault India announced a price reduction of up to ₹96,395.

• Kiger: From ₹11,29,995 to ₹10,33,600.
  
  

• Kwid Climber: New price at ₹6,44,995 (earlier ₹5,90,000).
  
  

Jeep

Jeep India has rolled out one of the biggest revisions with reductions of up to ₹4.84 lakh.

• Jeep Compass: Now at ₹17.73 lakh (earlier ₹18.99 lakh).
  
  

• Jeep Meridian: From ₹24.99 lakh to ₹23.33 lakh.
  
  

Why This Matters

The GST tax cut is expected to boost demand in the automobile sector, particularly in the entry-level segment, which caters to the majority of Indian buyers. By reducing the upfront cost of ownership, the reforms are also likely to accelerate sales for two-wheelers, hatchbacks, and compact SUVs.

At the same time, larger cars and premium bikes remain under a simplified 40% slab, while EVs continue to enjoy tax benefits striking a balance between affordability, revenue collection, and sustainability.

Final Takeaway

From Mahindra to Maruti Suzuki, Tata Motors to Jeep, all major automakers have embraced the GST reforms and revised their pricing to benefit customers. With cars like the Alto K10, Tiago, Kiger, Compass, and Bolero now more affordable, the festive season is expected to bring renewed excitement in the automobile market.