Overview
- GST 2.0 takes effect on Sept. 22 with two core rates: 18% for small cars and two-wheelers up to 350cc, and a flat 40% for larger and luxury vehicles, replacing the compensation cess.
- Mahindra implemented revised pricing early from Sept. 6, detailing savings up to ₹1.56 lakh on models such as XUV3XO and up to ₹1.43 lakh on XUV700, with cuts also on Thar and Scorpio ranges.
- Maruti Suzuki reports 1.5 lakh bookings and a 15% rise in inquiries since the tax cut, expects 15–20% festive-period sales growth, and is passing on benefits of up to ₹1.11 lakh on models like Dzire.
- Volkswagen confirmed full pass-through with reductions up to ₹3.27 lakh on the Tiguan R-Line and around ₹66,900–₹68,400 on Virtus and Taigun, while Hyundai and Kia outlined sizeable trims-wise cuts effective with GST 2.0.
- Dealers project more than 5.2 million units sold in the 42-day festive window, citing lower prices across segments including two-wheelers (HMSI cuts up to about ₹18,887) and expected large rupee drops on luxury models.