With the implementation of GST 2.0, car buyers in India are witnessing notable price reductions in small and sub-4 metre vehicles, thanks to the tax rate cut from around 29-31% to a flat 18%. This reform, effective from late September 2025, has prompted major automakers like Tata Motors, Maruti Suzuki, and Hyundai to pass on the savings directly to consumers. These changes have made popular budget-friendly cars more affordable, especially with festive season offers adding further attraction to the Rs 10 lakh segment.
GST 2.0 Tax Benefits
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Effective GST rate cut to 18% on small cars and sub-4 metre vehicles.
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Price reductions range from Rs 40,000 up to Rs 1.55 lakh on various models.
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Reduced tax translates to lower ex-showroom and on-road prices, including road tax and insurance premiums.
Tata Motors
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Tata Altroz sees price cuts up to Rs 1.55 lakh.
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Punch and Nexon models also benefit from GST savings.
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Tata Nexon, a compact SUV, attracts buyers looking for style and safety within budget.
Maruti Suzuki
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Maruti Swift is now priced around Rs 5.79 lakh post-GST cut.
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Fronx and Alto K10 also received price reductions up to Rs 1.11 lakh.
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Widely favored for reliability and fuel efficiency.
Hyundai Motor India
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Hyundai i20 and Exter micro-SUV get price cuts up to Rs 66,000 and Rs 32,000 respectively.
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i20 offers a premium experience with lowered price, making it an appealing choice under Rs 10 lakh.
Sources: Financial Express, NDTV Auto:, CarDekho, Hindustan Times, Economic Times
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