Drive Home The Savings: GST 2.0 Triggers Price Cut By Mahindra, Maruti, Nissan, Toyota And Others

Leading Indian carmakers have announced steep price cuts across their portfolios after the GST Council reduced tax rates on automobiles last week.

Under the next-generation GST reforms, the government has lowered the goods and services tax rate on small cars from 28% to 18%, while luxury vehicles now attract a flat 40% rate.

According to Kotak Institutional Equities, on-road prices are expected to fall 5-8% on average, with passenger vehicles seeing reductions of 2-9% in overall cost. Automakers have moved quickly to pass on the benefit, announcing cuts ranging from thousands to a few lakhs across several models.

Mahindra and Mahindra announced price cuts for its passenger vehicles across segments on Sept. 6. The company reduced the price for Bolero by Rs 1.27 lakh, Scorpio by Rs 1.45 lakh, Thar Roxx by Rs 1.33 lakh and XUV700 by Rs 1.43 lakh.

Potential car buyers can now save up to Rs 1.56 lakh on M&M vehicles. The company said more than 60% of its sales volumes, including commercial vehicles, fall under the reduced 18% GST slab.

Tata Motors has announced price cuts on both passenger and commercial vehicles. The Nexon cost dropped by Rs 1.55 lakh and the Safari by Rs 1.45 lakh. In commercial vehicles, heavy CVs became cheaper by Rs 2.8-4.65 lakh, buses and vans by Rs 1.2-4.35 lakh and pickups by Rs 30,000-1.10 lakh. Tata Motors became the first major CV manufacturer to pass on full GST benefits. The new prices will come into effect from Sept. 22.

Renault has reduced prices for its multiple models. The new prices will come into effect from Sept. 22. The Renault Kwid now starts at Rs 4.29 lakh. The Triber became cheaper by up to Rs 78,000, while the Kiger saw maximum price reduction of Rs 96,395 on higher trims. The move coincides with Navratri to attract new buyers.

Hyundai Motor India reduced cut prices up to Rs 2.40 lakh for its cars across various segments. The revised prices will come into effect from Sept. 22.

The Hyundai Tucson saw the biggest reduction at Rs 2.40 lakh, followed by Venue at Rs 1.23 lakh, i20 at Rs 98,000, and Alcazar at Rs 75,000.

The company said about 60% of its portfolio now falls under the reduced 18% GST slab.

Toyota’s price revisions will come into effect from Sept. 22. The automaker has slashed the price for Fortuner by Rs 3.49 lakh, Legender by Rs 3.34 lakh, Hilux by Rs 2.52 lakh and Vellfire by Rs 2.78 lakh. The Innova Crysta has become cheaper by Rs 1.8 lakh and the Hycross by Rs 1.15 lakh. Toyota expects the reform to improve affordability and boost festive demand.

Skoda combined GST benefits with limited-period discounts up to Rs 2.5 lakh until Sept. 21. The Kushaq price has been reduced by up to Rs 66,000, the Slavia by Rs 63,000, and the Kodiaq by Rs 3.3 lakh.  

Audi reduced prices between Rs 2.6 lakh and Rs 7.8 lakh across models. The price for Q3 dropped by Rs 3.07 lakh, A4 by Rs 2.64 lakh, A6 by Rs 3.64 lakh, Q5 by Rs 4.55 lakh, Q7 by Rs 6.15 lakh and flagship Q8 by Rs 7.8 lakh.

Mercedes announced reductions of Rs 2.6-11 lakh across its lineup. The price for A200d has been reduced by Rs 2.6 lakh, E-Class LWB by Rs 6 lakh, S450 by Rs 11 lakh and GLE 450 SUV by Rs 8 lakh.

Nissan passed on the full GST benefit, cutting prices up to Rs 1 lakh on the Magnite. The base Visia MT now falls below Rs 6 lakh, while top-end Tekna+ CVT trims dropped by more than Rs 1 lakh. Its factory-approved CNG kit also became cheaper at Rs 71,999.

Maruti Suzuki reduced prices ranging between Rs 40,000 to Rs 2.25 lakh across models, including Alto K10, Wagon R, Swift and Ertiga, among others.

Meanwhile, two-wheeler makers such as Bajaj, Hero, and TVS also passed on benefits.