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Cars & Bikes Get Cheaper: What You Save Under GST 2.0

car prices after GST cut

From 22 September 2025, India’s GST regime changed. The multiple tax slabs (28%, 18%, etc.) have been simplified, and many vehicles (cars & two-wheelers) now attract lower GST.

What this means in practice: small cars and bikes up to 350cc now have GST of 18% instead of the old higher rate. Larger cars and luxury vehicles have been shifted to a flat 40% slab (removing or reducing the prior cess etc.)

How Much the Price Cuts Look Like

Here are some example models, their previously announced price reductions under GST 2.0, and what the old vs (roughly) new ex-showroom price translates to. These numbers are approximations, based on cut figures and typical pre-cut pricing. Actual prices depend on variant, location etc.

Price Table – Old vs New (Approx ex-showroom)

Brand & ModelOld Price (₹)GST 2.0 Cut (₹)New Price (₹)
Mahindra Bolero Neo10,00,0001,27,0008,73,000
Mahindra Scorpio N30,00,0001,45,00028,55,000
Mahindra XUV70025,00,0001,25,00023,75,000
Mahindra Thar16,00,0001,10,00014,90,000
Mahindra XUV30013,00,00098,00012,02,000
Tata Nexon20,00,0001,55,00018,45,000
Tata Punch12,00,00090,00011,10,000
Tata Harrier27,00,0001,60,00025,40,000
Tata Safari30,00,0001,80,00028,20,000
Toyota Fortuner40,00,0003,49,00036,51,000
Toyota Innova Crysta25,00,0001,90,00023,10,000
Toyota Innova Hycross30,00,0002,20,00027,80,000
Toyota Hyryder18,00,0001,35,00016,65,000
Kia Carnival50,00,0004,48,00045,52,000
Kia Seltos20,00,0001,50,00018,50,000
Kia Sonet13,00,00090,00012,10,000
Maruti Alto K105,10,00040,0004,70,000
Maruti Baleno9,00,00070,0008,30,000
Maruti Brezza12,00,00095,00011,05,000
Hyundai i2010,00,00098,0539,01,947
Hyundai Creta18,00,0001,30,00016,70,000
Hyundai Venue12,00,00085,00011,15,000
Hyundai Exter8,00,00065,0007,35,000
Honda Elevate15,00,00058,40014,41,600
Honda City13,00,00070,00012,30,000
Honda Amaze9,00,00055,0008,45,000
Brand & ModelOld Price (₹)GST 2.0 Cut (₹)New Price (₹)
Hero Splendor Plus1,00,0005,000 – 10,00090,000 – 95,000
Hero HF Deluxe70,0005,00065,000
Hero Glamour90,0007,00083,000
Honda Activa 6G80,0006,00074,000
Honda Shine95,0007,00088,000
Honda CB3502,00,00015,0001,85,000
Bajaj Pulsar 1501,30,00010,0001,20,000
Bajaj Platina80,0006,00074,000
TVS Jupiter85,0006,00079,000
TVS Apache RTR 1601,30,00010,0001,20,000
Royal Enfield Classic 3502,20,00015,0002,05,000

Key Takeaways

  • Small cars and scooters enjoy the steepest percentage drop, with GST falling from 28% to 18%.
  • Large SUVs and MPVs get relief thanks to a flat slab replacing the earlier tax-plus-cess combination.
  • Two-wheelers up to 350cc all see a noticeable cut, making daily commuting cheaper.
  • Exact prices vary by state and variant, but the direction is clear: vehicles across the board are more affordable starting September 2025.

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