Tata, Toyota, Hyundai Cut Prices as GST Benefits Rolled Out

Following the GST Council’s landmark decision to introduce a simplified two-tier tax system of 5% and 18%, several leading automakers have slashed prices across passenger and commercial vehicles. The reform, one of the biggest changes since the rollout of GST in 2017, reduces taxes on small cars, buses, trucks, and delivery vans, creating significant savings for customers.

Automakers including Hyundai, Tata, Toyota, Mahindra, Renault, Nissan, BMW, Lexus, Audi, Kia, and JSW MG Motor have all announced price reductions, passing on the benefits of the revised GST structure.

GST Reform and Impact on the Auto Sector

The GST Council has reduced tax slabs from four (5%, 12%, 18%, 28%) to just two (5% and 18%), while keeping a 40% slab for luxury and sin goods. With small cars, buses, and commercial vehicles now taxed at 18% instead of 28%, automakers are passing on the relief directly to buyers. This move is expected to drive higher sales during the festive season and boost demand across segments.

Hyundai Price Cuts

Hyundai has reduced prices by up to ₹2.4 lakh, effective September 22, 2025. The popular Tucson SUV, priced at around ₹30 lakh, is now cheaper by ₹73,808, while the i20 hatchback has seen a reduction of nearly ₹98,053. The revised pricing is expected to strengthen Hyundai’s position in both premium and mass-market categories.

Tata Motors Price Reductions

Tata Motors has slashed prices across both commercial and passenger vehicle segments.

• Commercial Vehicles: Discounts up to ₹4.65 lakh, with heavy commercial vehicles reduced by ₹2.8–₹4.65 lakh, buses and vans by ₹1.2–₹4.35 lakh, and small CVs by ₹30,000–₹1.1 lakh.

• Passenger Cars: Price cuts of up to ₹1.55 lakh. The Tiago is cheaper by ₹75,000, Nexon by ₹1.55 lakh, and Punch by ₹85,000.

Nissan Motor India Adjusts Magnite Prices

Nissan has reduced the price of its Magnite compact SUV by up to ₹1 lakh. The revised prices will apply from September 22, coinciding with Navratri, making it more attractive to first-time SUV buyers.

Mahindra & Mahindra Price Cuts

Mahindra has implemented price cuts of up to ₹1.56 lakh across its lineup.

• Bolero Neo: ₹1.27 lakh reduction

• XUV3XO Petrol: ₹1.4 lakh reduction

• XUV3XO Diesel: ₹1.56 lakh reduction

• Thar 2WD: ₹1.35 lakh reduction

• Scorpio Classic: ₹1.01 lakh reduction

• Scorpio-N: ₹1.45 lakh reduction

• XUV700: ₹1.43 lakh reduction

These changes are effective immediately and already updated across dealerships.

Renault India’s Revised Pricing

Renault has cut prices by up to ₹96,395 across its models.

• Kwid: Reduced by ₹55,095

• Triber: Reduced by ₹80,195

• Kiger: Reduced by ₹96,395

These cuts are aimed at boosting demand for Renault’s refreshed lineup during the festive season.

Toyota Kirloskar Motor Discounts

Toyota has announced price reductions of up to ₹3.49 lakh.

• Glanza: Cheaper by ₹85,300

• Taisor: ₹1.11 lakh cut

• Innova Crysta: ₹1.8 lakh cut

• Fortuner: ₹3.49 lakh cut

• Vellfire: ₹2.78 lakh cut

Even luxury models like Legender, Hilux, and Camry are now significantly more affordable.

Luxury Carmakers Join In: BMW, Lexus, and Audi

• BMW: Reduced prices by up to ₹8.9 lakh.

• Lexus: Offering massive cuts of up to ₹20.8 lakh, effective September 22.

• Audi: Price reductions between ₹2.6 lakh and ₹7.8 lakh, making its SUV and sedan range more accessible.

Kia and JSW MG Motor India Announce Reductions

• Kia: Reduced prices by ₹48,513–₹4.48 lakh across models, effective September 22.

• JSW MG Motor India: Discounts between ₹54,000 and ₹3.04 lakh, effective September 7.

Industry Outlook

The GST reform has already triggered one of the most widespread price reductions in the Indian auto industry. By passing benefits to customers, automakers are not only boosting festive sales but also driving long-term demand. Analysts believe this reform will accelerate adoption of both passenger and commercial vehicles, giving the auto sector a strong growth trajectory.