The Indian government’s implementation of the new GST 2.0 rates has brought welcome news for consumers looking to purchase new vehicles. Effective from September 22nd, the revised GST structure has resulted in lower prices for cars and motorcycles across various segments. Hatchback models have experienced a significant reduction in GST, dropping from 28% to 18%. This positive change extends beyond hatchbacks, encompassing SUVs and motorcycles, all of which will now be subject to the lower 18% GST rate, instead of the previous 28%.
Cars with engines that are under 1200cc petrol, under 1500cc diesel, and with a length under 4 meters are now taxed at the reduced rate. However, other vehicles will still face the 40% GST. Simultaneously, motorbikes and scooters with engine capacities below 350cc also see the benefit of reduced GST.
Automobile manufacturers are reflecting these tax advantages in their pricing, offering price cuts to customers. Entry-level cars can now be acquired at a discount of up to Rs 40,000, while premium SUVs are seeing price reductions reaching up to Rs 30 lakh. Leading carmakers like Maruti Suzuki and Range Rover have announced price cuts, and motorcycle manufacturers such as Honda and Royal Enfield have also lowered their prices.
**Mahindra Cars Price Reductions:**
* Thar: Prices reduced by up to Rs 1.35 lakh.
* Scorpio Classic: Price reduction up to Rs 1.01 lakh.
* Thar Roxx: Price cuts up to Rs 1.33 lakh.
* XUV700: Potential savings up to Rs 1.43 lakh.
* Scorpio N: Price reduction up to Rs 1.45 lakh.
### Tata Cars Price Adjustments:
* Tigor: Savings up to Rs 80,000.
* Tiago: Prices reduced by Rs 75,000.
* Harrier: Reduction of Rs 1.40 lakh.
* Nexon: Price cut of Rs 1.55 lakh on this SUV.
* Curvv: Customers can save up to Rs 65,000.
* Safari: Price reduction up to Rs 1.45 lakh.
### Toyota Cars Price Reductions:
* Legender: Price cuts reaching up to Rs 3.34 lakh.
* Fortuner: Price decrease up to Rs 3.49 lakh.
* Hilux: Reduction of up to Rs 2.52 lakh.
* Innova Hycross: Savings of Rs 1.15 lakh.
* Innova Crysta: Price reduced by Rs 1.80 lakh.
### Range Rover Cars Price Reductions:
* Range Rover 3.0D SV LWB: Price cut of Rs 27.4 lakh.
* Range Rover 4.4P SV LWB: Price reduction of Rs 30.4 lakh.
* Range Rover Sport 4.4 SV Edition Two: Potential savings of Rs 19.7 lakh.
* Range Rover 3.0P Autobiography: Price reduction of Rs 18.3 lakh.
* Defender range: Price cuts up to Rs 18.6 lakh.
### Kia Cars Price Cuts:
* Syros: Price reduction of Rs 1.86 lakh.
* Sonet: Price cuts of Rs 1.64 lakh.
* Carens: Savings of Rs 48,513.
* Seltos: Price reduction of Rs 75,372.
* Carnival: Price cuts of Rs 4.48 lakh.
### Maruti Suzuki Cars Price Reductions:
* WagonR: Savings of Rs 57,000.
* Alto K10: Price cut of Rs 40,000.
* Dzire: Price reduced by Rs 61,000.
* Swift: Price cut of Rs 58,000.
* Jimny: Price reduction up to Rs 1.14 lakh.
* Baleno: Savings of Rs 60,000.
* Invicto: Price reduction of up to Rs 2.25 lakh.
In addition to cars, the cost of scooters and motorcycles with engines smaller than 350cc have also been reduced. Companies like Honda, TVS, and Royal Enfield, among others, have adjusted their prices to reflect the GST changes.
### Honda Two Wheeler Price Changes:
* Activa 125: Price reduction of Rs 8,259.
* Activa 110: Became cheaper by Rs 7,874.
* Shine 125: Potential savings of Rs 7,443.
* Shine 100: Savings of Rs 5,672.
* CB350 Hness: Save Rs 18,598.
* SP160: Savings of Rs 10,635.
* CB350: Price reduced by up to Rs 18,887.