The automotive industry is experiencing a wave of price adjustments due to the implementation of new GST reforms. These reforms have reshaped the tax structure for vehicles, resulting in reduced prices for numerous models. Automakers are actively passing on these benefits to consumers through significant discounts. Mercedes-Benz India is leading the charge with price reductions across its entire range, reflecting the new GST 2.0 framework initiated by the Indian government. The new tax structure, starting from September 22, 2025, streamlines vehicle taxation, applying a 40% GST to all passenger cars. Electric vehicles continue to enjoy a concessional GST rate. Examples of price drops include the Mercedes-Benz GLA 220d 4MATIC AMG Line, now available at Rs 52.70 lakh, down from Rs 56.50 lakh, and the S 450 4MATIC, now priced at Rs 1.88 crore, down from Rs 1.99 crore. Skoda India is offering festive deals and GST benefits, including savings of up to Rs 5.8 lakh on the Kodiaq. Mahindra is offering discounts on all its vehicles, ranging from the Bolero to the XUV700. Toyota has also revised prices, providing savings to buyers on models like the Glanza and Fortuner. Moreover, Hyundai has also lowered prices on various models.
GST Reforms Usher in Vehicle Price Drops: Details from Mercedes, Mahindra, Toyota, and Skoda
