Overview
- The new structure taxes qualifying small cars at 18%—defined as under 4 metres with petrol up to 1,200cc or diesel up to 1,500cc—while larger vehicles face a 40% band.
- Automakers have passed through the cuts with sizable model‑wise reductions, including up to Rs 2.25 lakh at Maruti Suzuki, up to Rs 1.55 lakh at Tata Motors, and up to Rs 2.4 lakh at Hyundai.
- Hyundai’s biggest trims saw sharp drops such as Tucson by up to Rs 2.4 lakh, Venue by up to Rs 1.23 lakh, i20 by up to Rs 98,000 (N Line up to Rs 1.08 lakh), and Exter by up to Rs 89,000.
- Budget choices have expanded with several hatchbacks now starting near or below Rs 5 lakh ex‑showroom, including Maruti Alto K10, S‑Presso and Wagon R, Tata Tiago, and Renault Kwid.
- Dealers’ body FADA says hatchbacks will endure even as SUVs gain, with Maruti forecasting roughly 10% growth in small cars and Hyundai noting micro‑SUVs taking share; entry‑level hatchback wholesales fell over 60% from FY19 to FY25 while overall PV volumes rose 28.5%.