Major automakers including Tata Motors, Mahindra & Mahindra, and Renault India have announced price cuts across their passenger vehicle portfolios after the Goods and Services Tax (GST) Council slashed rates on cars and auto components earlier this week.
The 56th GST Council decision, effective September 22, reduces 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 continue to attract 5% GST.
Petrol and diesel cars of bigger engine capacity, which earlier paid nearly 50% tax (28% GST plus 22% cess), will now face 40%. Diesel cars up to 1500 cc and less than 4,000 mm in length will be taxed at 18%. Small motorcycles up to 350 cc also shift to the 18% slab.
With the revised tax rates, new prices/reduction in prices are as follows:
Mahindra cars after GST cut
Mahindra & Mahindra on Saturday announced reducing prices of its passenger vehicle range by up to ₹1.56 lakh from September 6, 2025 in order to pass on GST rate cut benefit to customers. The revised price of passenger vehicles are as follows:
- Bolero/Neo: From 31% to 18% – benefit of up to ₹1.27 lakh
- XUV3XO (Petrol): From 29% to 18% – benefit of up to ₹1.40 lakh
- XUV3XO (Diesel): From 31% to 18% – benefit of up to ₹1.56 lakh
- Thar 2WD (Diesel): From 31% to 18% – benefit of up to ₹1.35 lakh
- Thar 4WD (Diesel): From 48% to 40% – benefit of up to ₹1.01 lakh
- Scorpio Classic: From 48% to 40% – benefit of up to ₹1.01 lakh
- Scorpio-N: From 48% to 40% – benefit of up to ₹1.45 lakh
- Thar Roxx: From 48% to 40% – benefit of up to ₹1.33 lakh
- XUV700: From 48% to 40% – benefit of up to ₹1.43 lakh
Tata Motors cars after GST cut
Tata Motors was the first automobile manufacturer to announce a cut in prices of passengers good by up to ₹1,55,000. The new prices would come into effect from September 22. The revised prices are as follows:
- Tiago – up to ₹75,000 reduction
- Tigor – up to ₹80,000 reduction
- Altroz – up to ₹1,10,000 reduction
- Punch – up to ₹85,000 reduction
- Nexon – up to ₹1,55,000 reduction
- Curvv – up to ₹65,000 reduction
- Harrier – up to ₹1,40,000 reduction
- Safari – up to ₹1,45,000 reduction
Renault cars after GST cut (old price → new price)
Apart from Tata and Mahindra, Renault India has also announced reducing prices of its cars by up to ₹96,395. The old and revised rates are as follows:
Kiger
- Emotion CVT I L T: ₹11,29,995 → ₹10,33,600
- Emotion DT CVT I L T: ₹11,29,995 → ₹10,33,600
- Emotion MT: ₹9,14,995 → ₹8,57,000
- Emotion DT MT: ₹9,57,995 → ₹8,58,000
Kwid
- Climber AMT DT: ₹6,44,995 → ₹5,90,000
- Climber DT: ₹5,99,995 → ₹5,48,800
- Climber: ₹5,87,995 → ₹5,37,900
- RXT AMT: ₹5,99,995 → ₹5,48,800
Triber
- Emotion AMT DT: ₹9,39,995 → ₹8,59,800
- Emotion AMT: ₹9,16,995 → ₹8,38,800
- Emotion MT DT: ₹8,87,995 → ₹8,12,300
- Emotion: ₹8,64,995 → ₹7,91,200
The new prices take effect from September 6 for Mahindra cars, while Tata Motors and Renault will implement the revised prices from September 22.
Biggest and smallest price reductions
Among all the revised prices, Tata Nexon offers the highest discount of up to ₹1.55 lakh, closely followed by Mahindra’s XUV3XO Diesel ( ₹1.56 lakh benefit).
On the other hand, Tata Curvv records the lowest price cut at ₹65,000, while Renault’s entry-level Kwid sees reductions in the range of ₹49,000– ₹57,000 depending on the variant.
The revised rates are expected to boost demand during the festive season, as automakers pass on the full benefit of GST reductions to customers.
