Following the GST Council’s approval of a two-tier tax system of 5 per cent and 18 per cent, several automakers have announced price cuts on commercial and passenger vehicles to pass the benefits on to customers. In a significant reform since the rollout of GST on July 1, 2017, the Council last week decided to reduce the number of tax slabs from four to two, alongside a 40 per cent slab for sin goods.
The revised rates mean GST on small cars, buses, and commercial vehicles such as trucks and delivery vans will drop to 18 per cent from 28 per cent. Currently, GST is levied at 5, 12, 18, and 28 per cent, with an additional compensation cess on luxury and sin goods.
Hyundai
Hyundai announced on Sunday that it will reduce car prices by up to Rs 2.4 lakh, effective September 22, when the revised GST rates come into force. The Tucson, priced at around Rs 30 lakh, will become cheaper by Rs 73,808, while the i20 will see a price drop of Rs 98,053.
Tata Motors
Tata Motors is cutting prices of its commercial vehicles by up to Rs 4.65 lakh. Heavy commercial vehicles will get reductions ranging from Rs 2.8 lakh to Rs 4.65 lakh, buses and vans will be cheaper by Rs 1.2 lakh to Rs 4.35 lakh, and small commercial vehicles will see cuts of Rs 30,000 to Rs 1.1 lakh.
On passenger cars, Tata Motors has announced price cuts of up to Rs 1.55 lakh. “Tata Tiago will become cheaper by Rs 75,000, while the price of Nexon will be cut by Rs 1.55 lakh. Tata Punch will become cheaper by Rs 85,000.”
Nissan Motor India
Nissan Motor India on Monday announced price cuts of up to Rs 1 lakh for its compact SUV Magnite, passing on the GST rate cut benefits to customers. The revised pricing will apply to all deliveries made on or after September 22, 2025, coinciding with the first day of Navratri, the automaker said in a statement.
Mahindra & Mahindra
Mahindra & Mahindra said on Saturday that it has reduced prices across its passenger vehicle lineup by up to Rs 1.56 lakh, effective immediately. The revised prices for all applicable ICE models are valid from September 6, 2025, and will be updated across dealerships and digital platforms.
The company has cut prices of the Bolero/Neo range by Rs 1.27 lakh, XUV3XO (petrol) by Rs 1.4 lakh, XUV3XO (diesel) by Rs 1.56 lakh, THAR 2WD (diesel) by Rs 1.35 lakh, THAR 4WD (diesel) by Rs 1.01 lakh, and Scorpio Classic by Rs 1.01 lakh. Prices for Scorpio-N, Thar Roxx, and XUV700 have been reduced by Rs 1.45 lakh, Rs 1.33 lakh, and Rs 1.43 lakh, respectively.
Renault India
Renault India on Saturday said it will reduce vehicle prices by up to Rs 96,395. This move enhances the value proposition of Renault’s refreshed lineup, including the Triber and Kiger, and is expected to boost momentum during the festive season. Entry-level Kwid prices will drop by Rs 55,095, Triber by Rs 80,195, and Kiger by up to Rs 96,395.
Toyota
Toyota Kirloskar Motor announced on Saturday that it is cutting prices of its vehicles by up to Rs 3.49 lakh. Glanza will see a reduction of up to Rs 85,300, Taisor by Rs 1.11 lakh, Rumion by Rs 48,700, Hyryder by Rs 65,400, Crysta by Rs 1.8 lakh, Hycross by Rs 1.15 lakh, and Fortuner by Rs 3.49 lakh. Prices for Legender, Hilux, Camry, and Vellfire will drop by Rs 3.34 lakh, Rs 2.52 lakh, Rs 1.01 lakh, and Rs 2.78 lakh, respectively, TKM said.
BMW
Luxury carmaker BMW has announced price reductions of up to Rs 8.9 lakh across its various models.
Lexus India
Lexus India said on Monday that it is reducing prices of its entire product range by up to Rs 20.8 lakh to fully pass on the GST benefits. The new prices will be effective from September 22, 2025. Reductions range from Rs 1.47 lakh on the ES 300h sedan to Rs 20.8 lakh on the flagship LX 500d SUV.
Audi India
German automaker Audi on Monday announced price cuts ranging from Rs 2.6 lakh to over Rs 7.8 lakh across its models in India. Under the revised prices, the entry-level SUV Q3 now starts at Rs 43.07 lakh, down from Rs 46.14 lakh, while the top-end SUV Q8 starts at Rs 1.1 crore, down from Rs 1.18 crore. Prices for SUVs Q5 and Q7, as well as sedans A4 and A6, have also been reduced.
Kia India
Kia India on Monday said it is reducing vehicle prices by up to Rs 4.48 lakh to pass on the GST rate cut benefits. Reductions range from Rs 48,513 on Carens to Rs 4.48 lakh on Carnival, effective from September 22, 2025.
JSW MG Motor India
JSW MG Motor India has lowered prices across its models, with reductions ranging from Rs 54,000 to Rs 3.04 lakh, effective September 7, 2025.