The introduction of GST 2.0 has been a huge boost to the Indian auto industry. It has made it easier to tax vehicles and caused a wave of price cuts across many carmakers. Starting September 22, 2025, the new rules will replace the complicated structure of 28% GST plus cess with two simple slabs: 18% for small cars and 40% for bigger vehicles, with no extra cess.
Because of this change, prices have gone down a lot across all brands, and automakers are rushing to pass the savings on to customers in time for the holidays.
Kia is ahead with big price cuts
If you buy something from Kia India, you will be one of the first to get the full GST benefit. Price cuts of up to ₹1.64 lakh have been made to popular models like the Sonet. The Syros has also gone down in price by ₹1.86 lakh. The Seltos has lost ₹75,372, and the Carens Clavis has lost almost ₹78,674. The biggest price drop is on the Kia Carnival, which is now a whopping ₹4.49 lakh less than it was.
Honda is lowering the prices of all of its cars
Honda Cars India has also said that all of its best-selling models will be cheaper. You can save up to ₹95,500 on the Amaze now, based on the model. The well-known Honda City is now about ₹57,500 less expensive, and the brand-new Elevate SUV is now up to ₹58,400 less expensive. Honda should be able to compete better in the sedan and small SUV markets after these price cuts.
Early Cuts Are Made by Mahindra
Mahindra & Mahindra cut prices before they were supposed to, as early as September 6. The brand’s strong SUV range is now a lot more affordable. For example, the XUV3XO is now up to ₹1.56 lakh less expensive. The Bolero Neo has been lowered by ₹1.27 lakh, and the famous Thar has been lowered by up to ₹1.35 lakh. The prices of bigger SUVs like the Scorpio N and XUV700 have also gone down by more than ₹1.4 lakh.
It gets cheaper for Hyundai’s wide range
Nine ICE cars from Hyundai India have had their prices cut. The Grand i10 Nios is now ₹73,808 less expensive, and the i20 N Line is now over ₹1.08 lakh less expensive. Up to ₹1.24 lakh has been taken off the price of the Venue SUV, and the most expensive Tucson is now a whopping ₹2.4 lakh less expensive.
Renting a Belongs to the Group
Renault India has added the perks of GST to its affordable cars. The Kwid is down ₹55,095, the Triber is down ₹80,195, and the Kiger is down almost ₹96,395.
Look at the Industry
With big price cuts from names like Volkswagen and Nissan, the market as a whole is feeling good. Experts in the field think that GST 2.0 will not only lower the price of cars but also increase demand, which will help the auto industry get back on track with strong growth.
In addition, Volkswagen and Nissan have also announced similar reductions. Volkswagen is offering up to ₹3.27 lakh off across its vehicle lineup, while Nissan has passed GST savings to models like the Magnite, making them up to ₹1 lakh cheaper. These combined measures reflect a nationwide push by automakers to make vehicles more affordable under the new GST framework.
