Maruti Reduces Car Prices After GST Restructuring

Maruti Suzuki India, the country’s largest carmaker, has announced a significant price cut across its popular models, passing on the benefits of the recent Goods and Services Tax (GST) restructuring to customers. The reduction, which comes into effect from September 22, 2025, will see entry-level models become more affordable by up to ₹1.29 lakh, making this one of the company’s most impactful price revisions in recent years.

GST Revision Leads to Major Price Cuts

The central government’s decision to reduce GST on small and mid-sized passenger vehicles from 28% to 18% has prompted automakers to adjust prices accordingly. Maruti Suzuki has responded by slashing ex-showroom prices on hatchbacks, sedans, SUVs, and MPVs, aiming to stimulate demand in India’s competitive car market.

Entry-Level Cars Get the Biggest Price Drop

Among all models, the S-Presso and Alto K10 have seen the highest price reductions, making them more attractive for budget-conscious buyers.

• S-Presso: New price ₹3,49,000 (down ₹1,29,000)

• Alto K10: New price ₹3,69,000 (down ₹1,07,000)

• Celerio: New price ₹4,69,000 (down ₹91,100)

• WagonR: New price ₹4,98,000 (down ₹79,600)

• Ignis: New price ₹5,35,000 (down ₹71,300)

This move is expected to revive the small car segment, which had been facing stagnant growth in recent years.

Price Cuts in Mid-Range and Premium Hatchbacks

Popular hatchbacks and compact sedans have also become more affordable:

• Swift: Starts at ₹5,78,000 (down ₹84,600)

• Baleno: Starts at ₹5,98,000 (down ₹86,100)

• Dzire: Starts at ₹6,25,000 (down ₹87,700)

• Tour S: Starts at ₹6,23,000 (down ₹67,200)

• Fronx: Starts at ₹6,84,000 (down ₹1,12,000)

These models are expected to witness strong demand during the festive season, thanks to increased affordability.

SUVs Receive Substantial Price Reductions

The SUV lineup, one of Maruti Suzuki’s strongest growth drivers, has also seen notable cuts:

• Brezza: New price ₹8,25,000 (down ₹1,12,700)

• Grand Vitara: New price ₹10,76,500 (down ₹1,07,000)

• Jimny: New price ₹12,31,500 (down ₹51,900)

These corrections aim to make Maruti’s SUVs more competitive in India’s rapidly growing SUV market.

MPVs and Utility Vehicles Also Become Cheaper

Maruti Suzuki has extended the price cuts to its multi-purpose vehicle (MPV) lineup as well:

• Ertiga: ₹8,80,000 (down ₹46,400)

• XL6: ₹11,52,300 (down ₹52,000)

• Invicto: ₹24,97,400 (down ₹61,700)

Additionally, utility-focused vehicles such as the Eeco (₹5,18,000) and Super Carry (₹5,06,000) now offer better value for commercial buyers.

Industry Context: GST Reform Impact

Under the new GST framework:

• Small petrol cars (up to 1200cc) – Tax reduced from 28% to 18%

• Small diesel cars (up to 1500cc) – Tax reduced from 28% to 18%

• Luxury cars – Fixed 40% tax remains

• Electric vehicles – Continue at 5% GST

The reform is expected to revive the small car market by 10% this year, while the overall passenger car industry may grow 6–8%, according to Maruti Suzuki Chairman R. C. Bhargava.

Boosting Festive Season Demand

The timing of Maruti Suzuki’s announcement is strategic, coinciding with the upcoming festive season when car sales traditionally peak. With price cuts ranging from ₹67,000 to ₹1.29 lakh, the company aims to maintain its dominance in the passenger car segment while accelerating sales momentum.

Conclusion

By passing on GST restructuring benefits directly to customers, Maruti Suzuki has reinforced its position as a customer-first brand. The sweeping price cuts across entry-level cars, hatchbacks, SUVs, and MPVs are likely to fuel strong sales growth and strengthen consumer sentiment in the Indian automotive market.