INDIA: 6th September 2025: India’s car buyers are poised for a festive-season boon following the GST Council’s landmark tax rationalisation last week. Some of the nation’s most popular models have become significantly more affordable.
The price cuts span premium SUVs like Toyota’s Fortuner (down ₹3.49 lakh) and Legender (₹3.34 lakh), Mahindra’s Scorpio-N (₹1.45 lakh) and XUV700 (₹1.43 lakh), Tata’s Nexon (₹1.55 lakh), Safari (₹1.45 lakh), and Harrier (₹1.40 lakh), alongside mass-market hatchbacks including Tata’s Tiago (₹75,000), Tigor (₹80,000), and Altroz (₹1.1 lakh), Toyota’s Glanza (₹85,300), and Mahindra’s XUV3XO Petrol (₹1.40 lakh). Customers can save anywhere from ₹50,000 to ₹3.5 lakh, depending on the model and variant.
Manufacturer-wise breakdown
Tata Motors, the country’s third-largest automaker, is offering significant price cuts across its internal combustion engine portfolio. Nexon leads with a ₹1.55 lakh reduction, closely followed by Safari (₹1.45 lakh) and Harrier (₹1.40 lakh). Tiago and Tigor, the entry models, are now ₹75,000 and ₹80,000 cheaper, respectively. The Altroz has a ₹1.1 lakh price drop, while Tata’s upcoming Curvv SUV is expected to be ₹65,000 cheaper.
Mahindra & Mahindra India’s top SUV manufacturer has fully implemented GST benefits on its ICE SUV lineup, lowering prices by up to ₹1.56 lakh. XUV3XO Diesel has the highest price cut at ₹1.56 lakh, followed by Scorpio-N (₹1.45 lakh) and XUV700 (₹1.43 lakh). Thar variants also receive significant discounts. The company emphasises that this move improves SUV accessibility and aligns with government mobility goals.
Toyota Kirloskar Motor, known for premium SUVs and MPVs, has implemented steep price cuts—₹3.49 lakh on the Fortuner, ₹3.34 lakh on the Legender, ₹2.78 lakh on the Vellfire, and ₹2.53 lakh on the Hilux. The Glanza hatchback also received discounts. Toyota’s VP of Sales & Service, Varinder Wadhwa, welcomed the reform, saying it “enhances affordability and boosts industry confidence.”
Renault India: In a customer-focused move, Renault has announced that GST 2.0 benefits will be fully passed through across its entire portfolio beginning September 22, coinciding with Navratri. Price reductions up to ₹96,395, with the KWID starting at ₹4.29 lakh and Kiger and Triber models at ₹5.76 lakh. Renault India’s Managing Director, Venkatram Mamillapalle, stated, “This initiative reflects our unwavering commitment to customers and aims to boost festive demand.” Booking at the new prices is available nationwide.
Mercedes-Benz India: As part of its commitment to customers, Mercedes-Benz has announced that it will pass on the full benefit of GST reductions directly to buyers. As of September 22, the revised GST rate for all models (excluding EVs) will be 40%, pending government notification. Electric vehicles continue to qualify for the preferential 5% GST slab. This move ensures that the luxury automaker remains competitive despite broader industry changes.
GST 2.0 Tax Reset: Context
This GST overhaul significantly reduces tax rates on passenger vehicles, with the majority falling into one of two slabs: 18% (smaller cars and compact SUVs) or 40% (larger or luxury vehicles), replacing previous combined GST and cess rates of up to 48%. Despite these changes, the percentage of electric vehicles remains constant at 5%. The reset is the most significant in years, with the potential to lower affordability barriers and increase demand at a critical point in the sales cycle.
Market Reaction and Outlook.
Dealers report a “silent period” as consumers await the new GST 2.0 price lists, which go live on September 22.
A multi-brand Mumbai dealer said, “Customers are walking in, but nobody is booking. Everyone wants to wait for the new prices. It feels like a lull, but we know the floodgates will open after the 22nd.”
Industry analysts forecast that this GST-driven discount bonanza could usher in one of the most intense festive sales waves in recent memory, reshaping India’s passenger vehicle market dynamics.
