Big savings announced as automakers pass on GST 2.0 benefits to customers
In a move to make cars more affordable, several top car brands in India have announced significant price reductions following the new GST 2.0 rollout. Mahindra & Mahindra (M&M), Toyota Kirloskar Motor, and Renault India have all declared they will pass on the benefits of the latest tax reforms directly to customers.
Mahindra & Mahindra leads the way by offering discounts of up to Rs 1.56 lakh across its popular SUV lineup. Vehicles like the Thar, Scorpio, Bolero, XUV700, and Scorpio-N now come with big savings. For example, the Bolero and Bolero Neo are cheaper by up to Rs 1.27 lakh. The XUV3XO Petrol gets a Rs 1.40 lakh discount, while the XUV3XO Diesel sees a reduction of Rs 1.56 lakh. The Scorpio-N offers savings of up to Rs 1.45 lakh, the Thar Roxx is now Rs 1.33 lakh cheaper, and the premium XUV700 RS has a price cut of Rs 1.43 lakh.
Similarly, Toyota Kirloskar Motor has announced it will fully pass on the GST benefits to its customers. The discounts on Toyota vehicles range from Rs 48,700 on models like the Rumion to an impressive Rs 3.49 lakh on the Toyota Fortuner. Other models such as the Toyota Glanza, Taisor, and Hyryder also see significant price cuts, making these reliable SUVs and sedans more affordable just in time for the festive season.
Renault India has also announced price reductions of up to Rs 96,395 on its popular models — Kwid, Triber, and Kiger. These discounts aim to attract more customers and boost car sales across the country.
Under the new GST 2.0 rules, taxes on internal combustion engine (ICE) cars now vary between 18% and 40%, depending on the vehicle size and type. Smaller cars like hatchbacks and compact SUVs now attract 18%, while larger, luxury, and mid-size vehicles are taxed at 40%. This is a change from the previous GST rate of 28%, which also included additional cess based on engine capacity and size.
Electric vehicles (EVs), on the other hand, continue to enjoy a lower GST rate of just 5%. Hydrogen fuel cell vehicles (FCEVs) also benefit from a reduced GST rate — dropping from 12% to 5%.
These changes are expected to make a wide range of vehicles more affordable, encouraging more people to buy new cars and supporting India’s growing auto industry. With the festive season just around the corner, this price drop is likely to boost demand and bring joy to many car buyers.
