The introduction of GST 2.0 is bringing good news for the middle class, especially for those planning to buy a new vehicle. With the new GST rates coming into effect on September 22, 2025 (the first day of Navratri), the prices of cars and bikes have decreased. The GST on hatchback models has been slashed by 10 percent, dropping from 28 percent to 18 percent. This reduction applies not only to hatchbacks but also to SUVs and bikes, which will now have an 18 percent GST rate instead of 28 percent.
Specifically, vehicles with petrol engines under 1200cc, diesel engines under 1500cc, and a length of less than 4 meters have seen the GST rate lowered from 28 to 18 percent. All other vehicles will still be subject to a 40 percent GST. Furthermore, the GST on motorcycles and scooters with engines below 350cc has also been reduced.
Car and motorcycle manufacturers are passing on these tax benefits to consumers. Consequently, entry-level cars have become more affordable, with savings of up to Rs 40,000, while the price of premium SUVs has decreased by up to Rs 30 lakh. From Maruti Suzuki to Range Rover, and Honda to Royal Enfield, various manufacturers have announced price cuts.
**Mahindra Cars Price Reductions:**
* Thar: Price decreased by up to 1.35 lakh.
* Scorpio Classic: Price reduced by up to 1.01 lakh.
* Thar Roxx: Up to 1.33 lakh price cut.
* XUV700: Up to 1.43 lakh in savings.
* Scorpio N: Price cut of up to 1.45 lakh.
### Tata Cars Price Reductions:
* Tigor: Savings up to 80 thousand.
* Tiago: Price reduction of Rs 75,000.
* Harrier: Price reduced by 1.40 lakh.
* Nexon: Price cut of 1.55 lakh for this SUV.
* Curvv: Savings up to 65 thousand.
* Safari: Price cut of 1.45 lakh.
### Toyota Cars Price Reductions:
* Legender: Price reduced by up to 3.34 lakh.
* Fortuner: Price decrease of up to 3.49 lakh.
* Hilux: Price cut of up to 2.52 lakh.
* Innova Hycross: Savings of 1.15 lakh.
* Innova Crysta: Price reduction of 1.80 lakh.
### Range Rover Cars Price Reductions:
* Range Rover 3.0D SV LWB: Price reduced by 27.4 lakh.
* Range Rover 4.4P SV LWB: Price cut of 30.4 lakh.
* Range Rover Sport 4.4 SV Edition Two: Savings of 19.7 lakh.
* Range Rover 3.0P Autobiography: Price decreased by 18.3 lakh.
* Defender range: Price reduction of 18.6 lakh.
### Kia Cars Price Reductions:
* Syros: Price reduced by 1.86 lakh.
* Sonet: Price cut of 1.64 lakh.
* Carens: Savings of 48,513 lakh.
* Seltos: Price reduction of Rs 75,372.
* Carnival: Price reduction of 4.48 lakh.
### Maruti Suzuki Cars Price Reductions:
* WagonR: Savings of Rs 57,000.
* Alto K10: Price cut of Rs 40,000.
* Dzire: Price reduction of Rs 61,000.
* Swift: Price decrease of Rs 58,000.
* Jimny: Price reduced by up to 1.14 lakh.
* Baleno: Savings of Rs 60,000.
* Invicto: Price reduction of up to 2.25 lakh.
In addition to cars, the prices of scooters and bikes with engines less than 350cc have also been lowered. Honda, TVS, and Royal Enfield are among the two-wheeler manufacturers that have reduced prices.
### Honda Two Wheelers Price Changes:
* Activa 125: Price reduced by Rs 8,259.
* Activa 110: Price reduction of Rs 7,874.
* Shine 125: Savings of Rs 7,443.
* Shine 100: Savings of Rs 5,672.
* CB350 Hness: Savings of Rs 18,598.
* SP160: Savings of Rs 10,635.
* CB350: Price reduced by up to Rs 18,887.
