“GST revision 2025: Small Cars Cheaper, Luxury Cars Reimagined”

GST Revision 2025 cuts car prices in India! Small cars taxed at 18%, luxury at 40%, and cess scrapped—making vehicles more affordable for buyers.

“GST revision 2025: Small Cars Cheaper, Luxury Cars Reimagined”

The recent Goods and Services Tax (GST) revision has brought a wave of optimism to the Indian auto industry. With the new tax structure, several popular cars are set to become more affordable, sparking excitement among buyers and manufacturers alike.

Under the revised framework, the tax rate on small cars has been slashed from 28% to 18%, making budget-friendly vehicles even more accessible to the masses. On the other hand, luxury cars will now attract a 40% tax, aligning with their premium positioning.

In a major relief, the cess has been scrapped, significantly reducing the overall prices of bigger and mid-size cars. This move is expected to boost consumer demand, drive higher sales, and rejuvenate the automobile sector with renewed energy.

The GST revision isn’t just about lower prices—it’s about fueling dreams on wheels and giving the auto market the push it needs to accelerate toward growth and innovation.

Popular Cars That Just Got Cheaper After GST Revision

The recent GST 2.0 revision has brought a wave of excitement for car buyers in India. With the reduction of GST on small cars from 28% to 18%, several popular hatchbacks and compact cars are set to become more affordable. Here’s a look at the cars that will now cost less, making them even more attractive for Indian buyers.

Maruti Suzuki Alto K10

India’s most affordable hatchback, the Alto K10, continues to be a favorite among private owners and taxi operators. With the GST revision, its price could drop from ₹4.23 lakh to around ₹3.81 lakh (ex-showroom), making it an even more budget-friendly choice.

Maruti Suzuki Swift & Dzire

Both the Swift and Dzire, long-standing best-sellers in India, will now be taxed at 18% instead of 28%. This reduction could lead to a price drop of nearly ₹60,000, giving buyers more value for money in both the hatchback and sedan segments.

Hyundai Grand i10

Known for its premium feel and reliable performance, the Hyundai Grand i10 is set to become cheaper under GST 2.0. The price is expected to fall from ₹5.98 lakh to ₹5.51 lakh (ex-showroom).

“We at Hyundai Motor India Limited (HMIL) welcome the landmark GST reforms announced by the Government of India. This revolutionary step will provide a strong impetus to the Indian economy, enhance buoyancy and further strengthen consumer confidence.” – Unsoo Kim, MD, HMIL

Maruti Suzuki S-Presso

A stylish and compact hatchback, the S-Presso comes with a 1.0-litre engine and quirky design. With the revised GST rate, its price could come down from ₹4.26 lakh to ₹3.83 lakh (ex-showroom).

Tata Tiago

The Tata Tiago is one of the safest entry-level hatchbacks in India with a 4-star Global NCAP rating, strong build quality, and multiple feature options. After GST cuts, the price is expected to drop from ₹5.65 lakh to ₹5.15 lakh (ex-showroom), making it an even stronger contender in the segment.

Renault Kwid

Renault’s most affordable offering in India, the Kwid, is a direct competitor to the Alto K10. The hatchback is expected to become cheaper by around ₹40,000, making it a solid choice for first-time buyers.

The GST 2.0 reforms are not just making cars cheaper—they are boosting consumer confidence, supporting the “Make in India” initiative, and strengthening the auto sector. For buyers, this is the perfect time to drive home their dream car at a more affordable price.