GST cuts slash car prices by up to ₹1.55 lakh. Here’s what Tata and Maruti are offering

Leading Indian automakers have begun passing on the benefits of recent GST rate cuts directly to customers. Tata Motors announced price reductions of up to ₹1.55 lakh across multiple models, while Mahindra and Mahindra said it too would extend the full benefit to buyers.

The announcement comes a day after Maruti Suzuki India Chairman RC Bhargava confirmed that the company will also cut prices in line with the revised tax structure. “With the latest GST reduction, we project that the small car market, which was de-growing, will now grow this year by over 10 per cent,” Bhargava said. 

He added that Maruti’s Alto could see a price drop of ₹40,000–₹50,000, while the Wagon R may become ₹60,000–₹67,000 cheaper.

The GST Council’s decision to rationalise tax rates marks the most significant revision for the auto industry in years. The tax on small cars (under 4 meters in length, with engines under 1200cc for petrol and 1500cc for diesel) has been cut to 18%, down from the earlier 29–31% range, including cess. For larger cars—those exceeding 4 meters in length, over 1500cc engine capacity, or 170 mm ground clearance—the total tax has been slashed to 40%, down from 48–50%.

Tata Motors has published a model-wise price reduction list, showing savings of:

• ₹75,000 on the Tiago
• ₹1.10 lakh on the Altroz
• ₹85,000 on the Punch
• ₹1.55 lakh on the Nexon
• ₹1.40 lakh on the Harrier
• ₹1.45 lakh on the Safari

Other models such as the Tigor and Curvv will also see price drops. The company noted that exact discounts may vary by variant and urged customers to confirm with authorised showrooms.

“This reduction in GST is timely,” Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility was quoted in a report. “We are passing on the entire benefit to the customer.”

Meanwhile, motorcycles with engines below 350cc will also see tax relief, now taxed at 18% instead of the previous 28%, offering additional relief to two-wheeler buyers.