The implementation of GST 2.0 has spurred significant price reductions across the Indian auto sector, with car manufacturers passing on the benefits to consumers. Effective September 22, 2025, these revised prices reflect the changes in the Goods and Services Tax (GST) structure, impacting a wide array of models from entry-level hatchbacks to luxury SUVs.

Tata Motors:

Tata Motors has announced price cuts of up to ₹1.45 lakh. The Tiago is now cheaper by ₹75,000, while the Tigor sees a reduction of ₹80,000. The Altroz is more affordable by ₹1.10 lakh, and the Punch has a price cut of ₹85,000. The Nexon is cheaper by ₹1.55 lakh, the Harrier by ₹1.40 lakh and the Safari by ₹1.45 lakh. The Curvv receives a price reduction of ₹65,000.

Hyundai:

Hyundai is offering reductions of up to ₹2.4 lakh. The Grand i10 Nios is cheaper by up to ₹73,808, the Aura by ₹78,465, and the Exter by ₹89,209. The i20 sees a cut of up to ₹98,053, while the sportier i20 N-Line drops by ₹1.08 lakh. The Venue has been reduced by ₹1.23 lakh, while the Creta sees a cut of ₹72,145. The Creta N-Line version is ₹71,762 cheaper, and the Alcazar has been reduced by ₹75,376. The Tucson enjoys the maximum discount of ₹2.4 lakh.

Toyota:

Toyota has revised prices by up to ₹3.49 lakh. The Fortuner sees the steepest drop of ₹3.49 lakh, followed by the Legender at ₹3.34 lakh. The Hilux is cheaper by ₹2.52 lakh, the Vellfire by ₹2.78 lakh, and the Camry by ₹1.01 lakh.

BMW:

BMW has cut prices by up to ₹8.9 lakh. The 2 Series Gran Coupe is now priced at ₹45.3 lakh, the 3 Series LWB at ₹60.5 lakh, and the 5 Series LWB at ₹72.4 lakh. SUVs such as the X1 (₹50.6 lakh), X5 (₹93.7 lakh, down from ₹1.003 crore) and the flagship X7 (₹1.2 crore, down from ₹1.3 crore) have also become more affordable.

Mercedes-Benz:

Mercedes-Benz has also revised prices under the new 40 percent GST for luxury cars, with reductions ranging from ₹2.6 lakh to ₹11 lakh across its lineup. The S-Class S 450 4MATIC is now ₹1.88 crore (₹11 lakh lower), while the GLS 450d AMG Line sees a cut of ₹10 lakh, bringing it down to ₹1.34 crore. The GLE 450 4MATIC is reduced by ₹8 lakh to ₹1.07 crore, and the E-Class LWB 450 4MATIC drops by ₹6 lakh to ₹91 lakh. Among SUVs, the GLC 300 4MATIC is now ₹73.95 lakh (₹5.3 lakh lower), while the GLA 220d 4MATIC AMG Line falls by ₹3.8 lakh to ₹52.70 lakh. The C 300 AMG Line is priced at ₹64.30 lakh after a ₹3.7 lakh cut, and the entry A 200d becomes ₹45.95 lakh, down by ₹2.6 lakh.

Audi:

Audi India announced revised prices across its product portfolio following the implementation of GST 2.0. The Audi Q8 SUV will see the biggest price cut of ₹7.8 lakh. The Audi Q3 will now cost ₹3.07 lakh less, while the A6 sedan will now be priced ₹3.64 lakh lower.

These price revisions, effective from September 22, 2025, are a direct result of the GST Council's decision to reduce the levy on small cars to 18% from the earlier 28%, while bigger cars and SUVs now fall under a flat 40% GST slab without any additional cess. Electric vehicles (EVs) will continue to attract 5% GST. These changes aim to make vehicles more affordable and boost demand in the auto sector.