Intro:
The Indian auto market has entered a new era as GST 2.0 officially rolled out on 22 September 2025, bringing massive price cuts across hatchbacks, sedans, and SUVs. For millions of car buyers, the big question is: how much cheaper will your favorite car get under the new GST rules?
Initial reports confirm that cars in India are now ₹60,000 to ₹4 lakh cheaper, depending on the model and category. This development is expected to boost sales in the festive season and make 2025 one of the most exciting years for car buyers.
Recently, Tata Motors also announced a special price reduction after GST 2.0.
What Changed Under GST 2.0?
The government introduced GST 2.0 to simplify India’s taxation system and encourage automobile sales. Key changes include:
- Removal of cess on small and mid-sized cars
- Lower tax slabs for SUVs and premium models
- Aiming to make cars affordable for middle-class families and revive the automobile sector
This policy shift means car prices after new GST 2025 have gone down across almost every segment. From a compact Maruti Suzuki Swift to a premium Toyota Fortuner, buyers can now expect huge savings at showrooms.
Earlier this week, we covered VinFast VF6 Electric SUV’s India launch with GST benefits.
What is GST 2.0 and How Does It Affect Cars?
Under the new GST 2.0 system, the government has lowered tax slabs on automobiles. The cess on mid-sized and entry-level cars has been removed, while SUVs and premium cars have also received partial relief.
This revision is aimed at boosting car sales in India and making vehicles more affordable for middle-class families.
Which Cars Got Cheaper After GST 2025?
According to industry reports, car prices after new GST 2025 have dropped in almost every segment.
- Hatchbacks & Compact Cars – Price cut of ₹60,000 to ₹1.5 lakh
- Sedans – Reduced by ₹1.2 to ₹2.5 lakh
- SUVs & MUVs – Savings of ₹2 to ₹4 lakh depending on model
- Luxury Cars – Moderate reduction but still beneficial
For example:
- Maruti Suzuki Swift & Baleno are now cheaper by nearly ₹80,000 – ₹1 lakh after this new GST 2.0
- Tata Nexon and Hyundai Creta have seen price cuts of ₹1.5 – ₹2 lakh
- Premium SUVs from Mahindra, Kia, and Toyota are now reduced by ₹3 – ₹4 lakh
Car Buyers Waiting for Discounts
Dealers reported that many buyers delayed purchases in early September 2025, waiting for the GST 2.0 rollout. Now that the new prices are in effect, car showrooms are expecting heavy demand during the upcoming festive season.
Related Keywords for Better Understanding
- New GST rates for cars 2025 India
- Car price changes after GST 2.0
- Which cars will get cheaper from GST change
- Impact of GST revision on hatchback and SUV prices
- GST 2.0 car price list 2025
Conclusion
The new GST 2.0 tax regime is a welcome move for Indian car buyers. With reduced car prices after GST 2025, this is the best time to purchase a new vehicle. Whether you’re looking for an affordable hatchback or a premium SUV, the new GST rules ensure better value for money.
If you want to know how GST 2.0 is impacting daily essentials and other sectors beyond cars, check our [latest news section here].
Neeraj is a dedicated content writer specializing in agricultural schemes, government policies, and rural development in India. With extensive knowledge of the Pradhan Mantri Yojanas and related programs, Neeraj aims to provide clear, accurate, and up-to-date information to help farmers and citizens access government benefits effectively. Passionate about empowering rural communities through informative content, Neeraj is a Content writer at CWB Hindi News, brings expertise in simplifying complex topics for easy understanding.