Windfall as automakers slash prices post-GST cut

Leading automakers Hyundai Motor India, Tata Motors and Mahindra & Mahindra have passed on the benefits of goods and services tax (GST) rate cuts to consumers by significantly reducing prices across their vehicle lineup.

This follows the recent GST Council announcement to reduce with effect from September 22 taxes on small cars — up to 1,200 cc for petrol and 1,500 cc for diesel, under 4 metres in length — from 28 per cent to 18 per cent and bring larger vehicles and SUVs under a 40 per cent tax slab, down from effective 50 per cent.

Hyundai has slashed prices by up to Rs 2.4 lakh across its passenger vehicle models, effective September 22. Hyundai Tucson will now be cheaper by Rs 2,40,303, followed by Venue (Rs 1,23,659) and Creta (Rs 72,145). Unsoo Kim, managing director, said: “We sincerely appreciate the Centre’s progressive move to reduce GST on passenger vehicles. This reform is a strong step towards making personal mobility more affordable and accessible.”

Tata Motors has reduced prices by up to Rs 1.55 lakh across its range of vehicles, effective September 22. Tata Nexon will see the largest reduction at Rs 1.55 lakh, followed by Safari (Rs 1.45 lakh), Harrier (Rs 1.40 lakh), Altroz (Rs 1.10 lakh), Punch (Rs 85,000), and Tiago (Rs 75,000). Shailesh Chandra, MD (passenger vehicles), said: “This progressive decision will make personal mobility more accessible, and we are committed to passing the entire benefit to customers.”

India’s leading SUV manufacturer M&M implemented price reductions of up to Rs 1.56 lakh across its internal combustion engine (ICE) SUV lineup effective Saturday. Its XUV3XO (diesel) benefits the most with a Rs 1.56 lakh cut, followed by Scorpio-N (Rs 1.45 lakh), XUV700 (Rs 1.43 lakh), Thar Roxx (Rs 1.33 lakh), Bolero/Neo (Rs 1.27 lakh) and Thar 4WD diesel (Rs 1.01 lakh).

Industry experts predict these price cuts will spur demand, particularly during the festival season starting with Navratri. The Federation of Automobile Dealers’ Association has emphasised that seamless implementation is crucial for ensuring these benefits reach consumers effectively.

Other automakers, including Renault India and Maruti Suzuki, are also expected to announce similar reductions. Maruti projects a 10 per cent sales increase for small cars.