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GST Benefits On Cars: M&M, Tata Motors, Renault Slash Prices; Maruti Suzuki Expected To Follow Suit
Maruti Suzuki — which is also expected to announce price cuts soon — will likely reduce rates by 6% to 9%.
06 Sep 2025, 12:50 PM IST 
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Under the new GST regime, small cars will be taxed at 18%, while bigger cars will attract 40% GST. (Photo source: Freepik)
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Auto companies are preparing to pass on GST benefits to customers as the new tax rates come into effect on Sept. 22.
Tata Motors on Friday reduced car prices by up to Rs 1.40 lakh, while Mahindra & Mahindra announced on Saturday that it will pass full benefits of up to Rs 1.56 lakh to consumer. Maruti Suzuki — which is also expected to announce price cuts soon — will likely reduce rates by 6% to 9%.
Renault India has also announced reduced prices by up to Rs 95,000.
Under the new GST regime, small cars will be taxed at 18%, while bigger cars will attract 40% GST.
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