GST reforms: Cars, SUVs to get cheaper in India
Thanks to the latest GST reforms, buying a new car or SUV in India just got a lot more affordable.
The government's updated tax rules, effective from September 22, mean lower prices for both small cars and big SUVs.
Major savings on small cars and big SUVs
GST on smaller petrol, LPG, and CNG cars (under 1,200cc) has been cut from 28% to 18%.
For bigger vehicles like diesel SUVs over 1,500cc or petrol ones above 1,200cc, GST is now a flat 40%, down from up to 50%.
This translates into major savings—think up to ₹1.55 lakh off Tata Nexon models and up to ₹1.43 lakh off Mahindra XUV700s.
Automakers gear up for higher demand
With these price cuts—like nearly ₹3.5 lakh off some Toyota Fortuner variants—owning an SUV or car is suddenly within reach for more people.
Automakers are gearing up for higher demand: Mahindra & Mahindra plans to add over two lakh units in production capacity soon, while Hyundai is boosting output too.
So if you've been eyeing a new ride, now might be the perfect time to make your move!