GST 2.0 Brings Biggest Price Cuts in Indian Auto Sector: Cars and Bikes Get Cheaper

The much-awaited GST 2.0 has officially come into effect from today, bringing sweeping changes for automobile buyers across India. With revised tax rates in place, major automakers have slashed prices across categories, from entry-level hatchbacks to premium SUVs and two-wheelers. The reductions are unprecedented, ranging from Rs 40,000 on small cars to an astonishing Rs 30 lakh on high-end luxury models. For consumers, this marks one of the biggest festive season windfalls in recent memory.

A Game Changer for Car Buyers

For car buyers, GST 2.0 has brought widespread relief. Brands across segments—ranging from Maruti Suzuki’s affordable hatchbacks to Range Rover’s ultra-luxury SUVs—have revised their price lists. The move is expected to boost showroom visits, encourage first-time buyers, and drive record-breaking festive season sales.

Mahindra Offers Aggressive Price Cuts

Mahindra has announced significant price reductions across its popular models. Buyers of the Bolero Neo can now save Rs 1.27 lakh, while the Scorpio N has seen a Rs 1.45 lakh cut. The rugged Thar series has also become cheaper by up to Rs 1.35 lakh. The flagship XUV700 is now priced Rs 1.43 lakh lower, making it a more competitive choice in the SUV market.

Tata Motors Reduces Prices on Top Sellers

Tata Motors has also revised prices on its most popular cars. The Tiago and Tigor now come with savings of Rs 75,000 and Rs 80,000 respectively, while the premium Altroz sees a Rs 1.10 lakh cut. The Nexon, one of India’s highest-selling SUVs, is now Rs 1.55 lakh cheaper, a major incentive for urban buyers. The Harrier and Safari, both premium SUVs, are now more accessible with price cuts exceeding Rs 1.40 lakh.

Toyota Leads with Heavy Discounts

Toyota has announced some of the biggest price drops under GST 2.0. The Fortuner is now Rs 3.49 lakh cheaper, while the Legender sees a Rs 3.34 lakh cut. Even premium imports like the Vellfire and Camry are seeing reductions of up to Rs 2.78 lakh. With Innova models also revised, Toyota has become one of the biggest beneficiaries of this tax reform.

Range Rover Luxury SUVs See Historic Cuts

Luxury automaker Range Rover has surprised buyers with historic price reductions. Its top-end Range Rover 4.4P SV LWB is now Rs 30.4 lakh cheaper, while the Range Rover Sport 4.4 SV Edition Two is down by nearly Rs 20 lakh. The Defender, Discovery, and Velar ranges have also seen substantial cuts, signalling a major shift in luxury SUV affordability in India.

Other Automakers Join the Race

Other carmakers have also responded with significant cuts. Kia has dropped prices by up to Rs 4.48 lakh, while Skoda is offering a mix of GST reductions and festive benefits amounting to Rs 5.8 lakh on some models. Hyundai buyers can now save up to Rs 2.4 lakh on premium models like the Tucson. Renault, Honda, Nissan, and Maruti Suzuki have also rolled out substantial cuts, ensuring that nearly every segment of the car market is more affordable.

Two-Wheelers Also Benefit from GST 2.0

The reforms are not limited to cars. With nearly 98 percent of India’s two-wheeler market dominated by scooters and motorcycles under 350cc, the GST rate cut from 28 percent to 18 percent is expected to be a huge relief for budget buyers. Popular models like the Hero Splendor, Honda Activa, Bajaj Pulsar, TVS Apache, and Royal Enfield Classic 350 will all be cheaper from today.

Honda Two-Wheelers Lead the Way

Honda two-wheelers have announced specific cuts across its lineup. The Activa 110 is now Rs 7,874 cheaper, while the Shine 125 has dropped by Rs 7,443. Premium offerings like the Hornet 2.0 and CB350 series have also seen reductions between Rs 13,000 and Rs 18,800, making them far more attractive to buyers looking for higher-end motorcycles at lower prices.

Impact on the Auto Sector

Industry experts predict that GST 2.0 will rejuvenate India’s auto sector, which has faced challenges due to rising costs and slowing demand. The price cuts are expected to boost volumes across categories, encourage first-time buyers, and strengthen India’s position as one of the fastest-growing automobile markets in the world. Automakers are also optimistic that this move will help in clearing existing inventories and give a strong push to production in the coming quarters.