Tata Motors has announced a significant reduction in its car prices across models, passing on the benefits of the recent GST rate cuts to consumers. The reduced rates will come into effect from Sept. 22, the same day the revised GST rates are scheduled to be implemented.
The price of the Tata Nexon will see a significant reduction of up to Rs 1.55 lakh with the implementation of the Goods and Services Tax (GST) reforms.
Last week, the GST Council approved a simplified two-tier tax structure for a wide range of goods across sectors, retaining only 5% and 18% slabs. The GST rate on small cars was reduced to 18% from 28%.
However, the revised tax rates apply solely to vehicles powered by internal combustion engines (ICE). Electric vehicles (EVs) continue to attract the unchanged GST rate of 5%.
"From 22nd Sept, Tata Motors cars & SUVs come home with up to ₹1.55 Lakh savings," Tata Motors said in a post on X.
Full GST benefit = full joy of saving!
September 6, 2025
From 22nd Sept, Tata Motors cars & SUVs come home with up to ₹1.55 Lakh savings.
Book yours early - the festive season rush is on the way!#TataMotors #GSTPriceDrop #TheDriveThatMatters pic.twitter.com/C2QQm7zTnAThe reduced prices will be applicable across popular models of Tata Motors, including Tiago, Punch, Tigor, Nexon, Harrier and Safari, among others.
Tata Motors Cars Prices After GST Rate Cut
As can be seen from the above list, a reduction of over Rs 1 lakh is expected for Altroz, Nexon, Harrier and Safari. The price of the Tata Nexon will be slashed by up to Rs 1.55 lakh.
It is important to note that the discount may differ based on the variant of a particular model. It is advisable to get in touch with your closest Tata dealership to learn the precise amount you can save on your chosen model and variant.
"In line with the Hon'ble Prime Minister's vision, the Hon'ble Finance Minister's intent and our Customer First philosophy, Tata Motors will fully honour the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers. This will make our popular range of cars and SUVs even more accessible across segments, enabling first-time buyers and accelerating the shift towards new-age mobility for a wider spectrum of customers," said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd.
Under the updated tax regime, GST on compact cars has been lowered to 18%, while a 40% rate now applies to bigger vehicles. The removal of the cess has streamlined the taxation process for both automobiles and household items.
Previously, motor vehicles with engines under 1500 cc attracted a GST of 28%, alongside a significant cess exceeding 15% across nearly all categories, pushing the total tax burden above 40%.
Meanwhile, many leading automakers have also announced price cuts after the GST reforms. As manufacturers are likely to pass these tax savings on to buyers, more price drops are expected in the car market ahead of the Diwali festival.
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