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GST on sub-4m cars to drop: What it means
Starting September 22, 2025, the Indian government is cutting GST rates on compact cars—think hatchbacks and small SUVs.
Taxes on sub-4m cars with engines up to 1,200cc (petrol) or 1,500cc (diesel) will drop from 28% to 18%, making these popular rides more budget-friendly.
Price cuts on popular models
If you're eyeing models like the Tata Nexon or Mahindra XUV 3XO, you could save up to ₹1.55 lakh on diesel versions.
Even hatchbacks like the Maruti Swift and Hyundai i20 are set for price drops of up to ₹1.38 lakh.
The Maruti Suzuki Brezza will also be cheaper by around ₹48,000 under a new flat tax rate for larger engines—good news if you've been waiting for a better deal!