Dream SUVs at Dream Prices: Top 5 Popular Models Becoming More Affordable Post GST 2.0

Discover the dream SUVs at Dream Prices: Top 5 Popular Models Becoming More Affordable Post GST 2.0

“The revised Goods and Services Tax has come as good news for the automobile sector. Many popular cars are set to become more affordable. The tax on small cars has been lowered from 28% to 18%, while luxury vehicles will now attract a 40% tax. Importantly, the cess has been removed, further reducing the cost of larger cars.”

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https://economictimes.indiatimes.com/industry/auto/auto-news/maruti-swift-to-hyundai-creta-popular-cars-that-will-get-cheaper-with-gst-2-0/articleshow/123689117.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

How Would GST 2.0 Benefit the Auto Industry?

GST 2.0 is set to bring a positive shift in the Indian auto sector by rationalizing tax rates across vehicle categories. Under the new policy, small and medium-sized cars will now fall under the 18% GST slab, making them more affordable for middle-class buyers. This move is expected to boost demand in the budget and mid-range segment, encouraging first-time buyers and strengthening overall sales.

Interestingly, luxury cars will be taxed at 40%, which may sound high but is still lower than the current tax regime, where the combined GST and cess go beyond this rate. This reduction will make premium vehicles relatively more accessible, creating opportunities for growth in the luxury car market.

Dream SUVs at Dream Prices: Top 5 Popular Models Becoming More Affordable Post GST 2.0

Tata Nexon – Big Savings for a Big Favorite

The Tata Nexon, one of India’s most loved and best-selling SUVs, is set to become even more irresistible under GST 2.0. Falling neatly into the 18% tax slab based on its engine capacity and length, the Nexon will see a massive price cut. Buyers of the base model could save up to ₹80,000, making this SUV an unbeatable combination of style, safety, and affordability.

Hyundai Creta – Luxury at a Lower Cost

The Hyundai Creta, a top-selling SUV that continues to dominate Indian roads, will also benefit from GST 2.0. While the Creta now falls under the 40% slab, it was earlier taxed at 43% (28% GST + 15% cess). This shift may look small on paper, but it translates into a noticeable price drop, making the Creta’s premium features and bold design more accessible to Indian buyers.

Mahindra Thar – The True Off-Roader Gets Cheaper

The Mahindra Thar, India’s iconic lifestyle SUV and a true off-roader, is set to see a major price relief under GST 2.0. Currently taxed at 45–50% depending on the variant, the Thar will now fall into the 40% slab, making this rugged SUV more affordable for adventure lovers.

Mahindra Scorpio – Power Meets Savings

The Mahindra Scorpio, a trusted family SUV and one of Mahindra’s strongest performers, will also benefit from the revised tax structure. Earlier, most variants attracted 50% tax (28% GST + 22% cess). With the cess scrapped, the Scorpio will now be taxed at 40%, leading to a significant price cut that makes this powerhouse SUV even more appealing to Indian buyers.

Toyota Innova Crysta – Premium MPV Gets a Price Relief

The Toyota Innova Crysta, one of the most popular and trusted MPVs in India, is set to become more affordable under GST 2.0. Earlier, it attracted a 50% tax (28% GST + 22% cess), but now it will fall under the 40% GST slab. This 10% reduction will bring noticeable savings for buyers, making the Innova Crysta an even more appealing choice for families and businesses alike.

Frequently Asked Questions (FAQ)

1. Which SUV will see the biggest price drop under GST 2.0?

The Tata Nexon is expected to see one of the biggest reductions, with its base model becoming cheaper by nearly ₹80,000 due to falling under the 18% GST slab.

2. Will luxury SUVs become cheaper under GST 2.0?

Yes. While luxury SUVs will now be taxed at 40%, this is still lower than the earlier 45–50% tax incidence. Popular models like the Hyundai Creta, Mahindra Thar, Mahindra Scorpio, and Toyota Innova Crysta will all see price drops.

3. How does GST 2.0 benefit small and mid-size cars?

Small and mid-size cars will now come under the 18% GST slab, compared to the earlier 28% + cess. This will make cars like the Tata Nexon and Maruti Swift significantly cheaper.

4. Will the Toyota Innova Crysta become more affordable?

Yes. The Toyota Innova Crysta, previously taxed at 50% (28% GST + 22% cess), will now be taxed at 40%, offering buyers noticeable savings.

5. When will the new GST 2.0 rates come into effect?

The government is expected to roll out GST 2.0 soon, and once implemented, car prices across multiple segments will reflect the revised rates.

6. Which car buyers benefit the most from GST 2.0?

• First-time buyers and middle-class families benefit the most with lower costs on small and mid-sized cars.
• SUV and MPV buyers also gain, as even premium vehicles like the Creta, Scorpio, Thar, and Innova Crysta will see price cuts.