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Automakers Announce Deep Price Cuts as GST 2.0 Takes Effect Sept. 22

The rate overhaul consolidates slabs and lowers many mass‑market vehicles to 18% GST, triggering model‑wise reductions even as high‑capacity motorcycles and ultra‑luxury models shift to a 40% band.

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Skoda GST Benefits and Offers

Overview

  • Hyundai, Tata, Mahindra, Toyota, Kia, Renault, Nissan, Skoda, MG and luxury brands including Mercedes‑Benz, BMW, Audi and Lexus unveiled cuts timed to the Sept. 22 rollout, with some effective immediately in select lineups.
  • Headline reductions include Toyota Fortuner by up to ₹3.49 lakh, Hyundai Tucson up to ₹2.40 lakh, Kia Carnival up to ₹4.48 lakh, Tata Nexon up to ₹1.55 lakh and Mahindra XUV3XO (diesel) up to ₹1.56 lakh.
  • Luxe segments also moved: Lexus listed reductions up to ₹20.8 lakh, BMW up to ₹8.9 lakh and Audi up to ₹7.8 lakh as the 40% rate replaces the prior 50% effective levy that included compensation cess.
  • Under GST 2.0, small cars and motorcycles up to 350cc fall to 18% GST, auto components standardise at 18% and farm machinery drops to 5%, while larger cars and bikes above 350cc move to the 40% category.
  • Motorcycles over 350cc are set to get pricier, with estimates for Royal Enfield 450cc and 650cc models indicating increases of roughly ₹20,000–₹36,000, and FMCG companies have sought short transition time to reflect cuts on shelves.