Full List of Cars and Bikes That Get Cheaper After GST Tax Cut: Maruti, Tata, Mahindra and More
The Next Gen GST reforms announced by Finance Minister Nirmala Sitharaman came into effect on September 22, bringing welcome relief to car and bike buyers. Vehicles with petrol engines up to 1200cc, diesel engines up to 1500cc, and a length of no more than 4000 mm are now taxed at 18% instead of 28%. Two-wheelers up to 350cc also fall in this lower slab, making entry-level cars and bikes much more affordable.
Larger cars and two-wheelers above 350cc, which earlier faced nearly 50% tax including cess, will now be taxed at a uniform 40%. Electric vehicles continue at just 5% GST.
Following the announcement, leading automakers have reduced their prices and passed the benefits to customers.
Tata Motors
Tata was the first to announce new prices, cutting up to ₹1.55 lakh across its lineup. The Tiago is now cheaper by ₹75,000, while the Tigor gets a cut of ₹80,000. Other models like the Altroz, Punch, Nexon, Curvv, Harrier, and Safari have also seen price drops.
Mahindra
SUV maker Mahindra reduced prices on popular models. The Bolero, Bolero Neo, XUV 3XO, and Thar 2WD (Diesel) now fall in the 18% slab, while larger SUVs are taxed at 40%.
Maruti Suzuki
Maruti’s Alto K10 became cheaper by ₹1,07,600, with a new price of ₹3,69,900. The Grand Vitara also saw the same reduction, now priced at ₹10,76,500.
Renault
Renault cut prices by up to ₹96,395. The Kiger dropped from ₹11,29,995 to ₹10,33,600. The Kwid Climber also saw reductions across its range.
Jeep
Jeep India announced the steepest cuts, with prices reduced by up to ₹4.84 lakh. The Compass now starts at ₹17.73 lakh, down from ₹18.99 lakh. The Meridian’s price was lowered from ₹24.99 lakh to ₹23.33 lakh.
MG Motor
JSW MG Motor India passed on the full GST benefit to buyers of its ICE SUV portfolio, including Astor, Hector, and Gloster.
- The Astor gets a cut of up to ₹34,000, now starting at ₹9.65 lakh.
- The Hector is cheaper by up to ₹49,000, with prices starting at ₹14 lakh.
- The Gloster sees the biggest slash, up to ₹2.83 lakh, with revised prices from ₹39.80 lakh.
MG has also offered additional festive season benefits of up to ₹3.5 lakh on the Gloster, along with financing options like 100% on-road funding and a three-month EMI holiday.
With these cuts, entry-level cars and two-wheelers are set to attract strong demand, while SUVs and premium vehicles have become more accessible for buyers ahead of the festive season.
