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Join NowBombay High Court: Get ready for a shake-up in the Indian auto market! In a move that brings massive festive cheer to consumers across the country, a major GST reform has just kicked in, making some of India’s most popular cars and motorcycles significantly cheaper. Starting September 22, the government’s Next Gen GST reforms, announced by Finance Minister Nirmala Sitharaman, are officially in effect, and the result is a tidal wave of price cuts from leading automakers that you cannot afford to ignore.
The Game-Changing Tax Cut Explained
For years, the dream of owning a new car has been subject to a hefty 28% GST for small vehicles. But not anymore. In a landmark decision, the tax slab for small cars and two-wheelers (with engines up to 350cc) has been slashed from a steep 28% all the way down to 18%. This 10% reduction is a monumental relief for both buyers and manufacturers, directly translating into tens of thousands of rupees in savings on entry-level vehicles.
- What is a “small car”? The benefit applies to vehicles with a petrol engine up to 1200cc or a diesel engine up to 1500cc, and a total length not exceeding 4 meters. Think of bestsellers like the Maruti Suzuki Alto, Hyundai i10, and Tata Tiago.
But the good news doesn’t stop there. Bigger cars and motorcycles (with engines above 350cc) are also seeing a significant tax reduction. Previously, these vehicles were subject to a 28% GST plus a punishing cess of up to 22%, pushing the total tax burden to nearly 50%. Under the new reforms, this has been streamlined to a single, lower slab of 40%. Meanwhile, electric vehicles (EVs) continue to enjoy the lowest tax bracket of 5%, reinforcing the government’s push for green mobility.
The Price Cut Bonanza: Who’s Offering What?
India’s leading auto giants have wasted no time in passing on this benefit to their customers. Here’s a look at the incredible discounts now on offer:
- Tata Motors: Leading the charge, Tata Motors has announced jaw-dropping price reductions of up to ₹1,55,000 across its lineup. The ever-popular Tiago is now cheaper by up to ₹75,000, while the Tigor sees a reduction of up to ₹80,000. Massive savings are also available on the Altroz, Punch, Nexon, Harrier, and the flagship Safari.
- Maruti Suzuki: The undisputed king of the small car segment, Maruti Suzuki has made its entry-level models even more accessible. The price of the Alto K10 has been slashed by a staggering ₹1,07,600, bringing its starting price down to a compelling ₹3,69,900.
- Mahindra: The SUV powerhouse is ensuring its most popular models become more affordable. The rugged Bolero, Bolero Neo, the new XUV 3XO, and the Thar 2WD (Diesel) now all fall under the much lower 18% tax bracket, with significant price cuts being rolled out.
- Renault: The French automaker has announced reductions of up to ₹96,395. The price of the stylish Kiger has been dramatically reduced, making it a more attractive proposition than ever before.
- Jeep: For premium SUV buyers, the news is spectacular. Jeep India has revised its prices, with reductions of up to a whopping ₹4.84 lakh. The iconic Jeep Compass, previously starting at ₹18.99 lakh, now begins at a much lower ₹17.73 lakh.
This aggressive price correction, perfectly timed for the upcoming festive season of Navratri and Diwali, is set to ignite demand and create a buying frenzy. For anyone in India, or NRIs in the USA and UK looking to gift a car back home, there has never been a better time to head to the showrooms.
