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Automakers Cut Car Prices Across India in September 2025

Major automakers in India have announced significant price cuts on cars and two-wheelers, thanks to the implementation of revised GST 2.0 rates effective from September 22, 2025. This move comes just in time for the festive season, aiming to make vehicles more affordable and boost demand.

Key Highlights

  • Price Reductions Across Brands: Mahindra & Mahindra, Tata Motors, Toyota, Skoda, Hyundai, Renault, Honda, and luxury brands like Jaguar, Land Rover, Volvo, and Lexus have all slashed prices across various models.

  • Range of Price Cuts: Discounts run from approximately ₹40,000 (Maruti Alto K10) up to ₹30.4 lakh (Jaguar Land Rover’s luxury line-up), depending on the model and manufacturer.

  • GST Rate Changes: The GST rate on small cars and two-wheelers is now 18% (down from 28%), while larger vehicles and SUVs are taxed at a flat 40% (with removal of additional cess).

  • Electric Vehicles: EVs remain attractively priced, retaining a low 5% GST rate.

  • Luxury Segment: Luxury carmakers like Volvo, Lexus, and JLR cut prices by over ₹6.9 lakh to ₹30 lakh on select models.

Examples of Price Cuts

Brand & ModelReduction AmountNew Effective Date
Tata NexonUp to ₹1.55 lakhSeptember 22, 2025
Mahindra carsUp to ₹1.56 lakhSeptember 6, 2025
Hyundai CretaUp to ₹2.4 lakhSeptember 22, 2025
Toyota FortunerUp to ₹3.49 lakhSeptember 22, 2025
Skoda (various)Up to ₹5.8 lakhSeptember 22, 2025
JLR Range RoverUp to ₹30.4 lakhSeptember 9, 2025
Maruti Alto K10₹40,000September 22, 2025
Yamaha bikesUp to ₹17,581September 22, 2025
Royal EnfieldGST benefit passed onSeptember 22, 2025

Why Are Prices Falling?

  • The primary reason is the GST 2.0 tax reform, which has led to a lower tax burden on automobile sales.

  • Automakers are passing on these savings directly to customers, hoping to boost sales during the upcoming festival season and support domestic demand.

Summary:
Automakers in India are offering substantial price cuts across numerous car and bike models as a result of GST reforms, making vehicles more affordable. The largest benefits are seen in the luxury segment, but savings apply across entry, mid-range, and premium models, with customers urged to take advantage before the festive rush.

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