GST 2.0: Buying a car in India has always been a mix of emotions dreams, family discussions, financial planning, and the excitement of finally taking delivery. But when prices drop significantly, that dream feels even sweeter. With the implementation of GST 2.0, the government has given car buyers something to truly celebrate. The new tax reforms have resulted in massive price cuts across several ICE (internal combustion engine) cars, making many popular models more affordable than ever before.
For mass-market buyers, this is a big moment. Many beloved cars from Mahindra, Kia, Tata, Maruti, and even Skoda have seen price reductions of over ₹1 lakh, and that means owning your favourite car has just become easier on the pocket. Let’s explore which cars have benefitted the most and how the new GST 2.0 slabs are reshaping the market.
Maruti Alto K10 The Affordable Dream Gets Cheaper
The Maruti Alto K10, often considered the first car for many Indian families, has received a pleasant surprise. Earlier priced between ₹4.23 lakh and ₹6.21 lakh, the hatchback now starts at just ₹3.70 lakh under the revised tax structure. The maximum savings touch ₹1.08 lakh, particularly on the entry-level LXi (O) variant.
This price cut makes the Alto K10 not just affordable but also an even stronger choice for budget-conscious buyers. Considering its low maintenance, peppy petrol engine, and Maruti’s widespread service network, this price revision could further strengthen its dominance in the entry-level segment.
Kia Sonet A Feature-Packed SUV Now More Attractive
Compact SUVs are the hottest trend in India, and the Kia Sonet has always been a strong contender. Thanks to GST 2.0, its prices have dropped from ₹8 lakh–₹15.64 lakh to ₹7.30 lakh–₹14 lakh. That’s a massive saving of up to ₹1.64 lakh on the top GTX Plus diesel automatic trim.
All diesel trims now enjoy savings of at least ₹1 lakh, while petrol versions see reductions of up to ₹1.35 lakh. With its sharp looks, premium features, and multiple engine choices, the Sonet was already popular, but the new prices make it an even more irresistible package.
Kia Syros The Biggest Beneficiary
Among all the cars on this list, the Kia Syros stands out as the biggest winner. The subcompact SUV has received a price cut of up to ₹1.86 lakh on its top-spec HTX Plus (O) diesel automatic trim. Its prices now range from ₹8.67 lakh to ₹15.94 lakh, compared to the earlier ₹9.50 lakh–₹17.80 lakh.
Even most petrol trims except the base HTK and HTK (O) manuals now enjoy savings of over ₹1 lakh. This makes the Syros an even stronger competitor in the crowded SUV segment, especially for those who want premium features without stretching their budget too far.
Maruti Brezza – A Trusted Family SUV Now Cheaper
The Maruti Brezza, one of India’s most loved family SUVs, has also benefitted from the tax cuts. Its price now starts at ₹8.26 lakh, going up to ₹12.86 lakh, compared to the earlier ₹8.69 lakh–₹13.98 lakh. The top-spec ZXi Plus automatic enjoys the biggest benefit, with a ₹1.12 lakh reduction, while the manual version saves ₹1.07 lakh.
This price revision makes the Brezza even more appealing, especially for middle-class families looking for a reliable, feature-packed SUV with Maruti’s strong after-sales service.
Mahindra XUV 3XO A Stylish SUV With Big Savings
The Mahindra XUV 3XO has quickly become one of the most stylish and practical compact SUVs. With GST 2.0, it has received price cuts of up to ₹1.56 lakh, particularly on the AX7 and AX7 L diesel variants. Prices now range from ₹7.28 lakh to ₹14.40 lakh, down from ₹7.99 lakh–₹15.79 lakh.
While some lower petrol trims saw smaller cuts, nearly all diesel versions now enjoy reductions of over ₹1 lakh, making the XUV 3XO a very strong value-for-money option.
Tata Nexon India’s Favourite SUV Gets Sweeter
The Tata Nexon, already a best-seller, has become even more attractive. Prices have fallen from ₹8 lakh–₹15.60 lakh to ₹7.32 lakh–₹14.05 lakh, translating into maximum savings of ₹1.55 lakh. The biggest reductions are seen on the Fearless Plus PS Diesel AMT variants.
This makes India’s favourite SUV an even stronger choice for those who want style, safety, and features in one package, now with an added financial advantage.
Skoda Kylaq Premium SUV At Mass-Market Pricing
The Skoda Kylaq (also known globally as Kushaq) now offers savings of up to ₹1.19 lakh, with new prices ranging from ₹7.55 lakh to ₹12.80 lakh. This puts it in a very competitive position, even undercutting some sub-4m SUVs like the Maruti Brezza and Kia Syros in terms of pricing.
With European design, strong build quality, and Skoda’s driving dynamics, the Kylaq is now a stronger contender in the mid-size SUV market.
Mahindra Scorpio N and Scorpio Classic Big Benefits For Big SUVs
Mahindra’s Scorpio brand is synonymous with power and road presence in India. With GST 2.0, both Scorpio N and Scorpio Classic have received significant price cuts.
- Scorpio N: Now priced between ₹13.20 lakh and ₹24.17 lakh (down from ₹13.99 lakh–₹25.62 lakh), saving buyers up to ₹1.45 lakh.
- Scorpio Classic: Now available between ₹12.98 lakh and ₹16.70 lakh, with maximum savings of ₹1.02 lakh.
For those who always dreamed of owning a Scorpio, this is a golden opportunity.
Mahindra Thar Roxx The Lifestyle SUV Gets More Affordable
The Mahindra Thar Roxx, one of the most popular lifestyle SUVs in India, has also joined the price-cut wave. Its prices now start at ₹12.25 lakh and go up to ₹22.06 lakh, offering a maximum saving of ₹1.33 lakh on the top AX7 L 4WD variant.
For adventure lovers and off-road enthusiasts, the Thar Roxx just became more tempting—especially ahead of its 3-door facelift version which is coming soon.
Mahindra XUV700 The Flagship Gets Cheaper
The Mahindra XUV700, the brand’s flagship SUV, has received a price cut of up to ₹1.43 lakh. Prices now range from ₹13.66 lakh to ₹23.71 lakh, compared to ₹14.49 lakh–₹25.14 lakh earlier. Most variants except the entry-level MX and AX5 Select trims are now cheaper by over ₹1 lakh.
For buyers seeking a premium SUV experience with advanced features, powerful engines, and strong safety credentials, the XUV700 now offers even better value.
GST 2.0 How The New Tax Rates Work
The big reason behind these price cuts is the government’s GST 2.0 reform, which has slashed the overall tax rates on cars.
- Sub-4m petrol cars: Reduced from 29% to 18% (11% savings)
- Sub-4m diesel cars: Reduced from 31% to 18% (13% savings)
- Cars above 4m with engines ≤1500cc: Reduced from up to 45% to 40% (5% savings)
- SUVs above 4m with engines >1500cc: Reduced from up to 50% to 40% (10% savings)
These reductions directly impact the ex-showroom prices, making popular models significantly more affordable.
A New Era For Car Buyers In India
With the rollout of GST 2.0, car buyers in India are entering a new era. For years, high taxes inflated prices, putting many dream cars out of reach. Now, with cuts exceeding ₹1 lakh across multiple popular models, the dream of owning a car feels more achievable.
From first-time buyers looking at budget hatchbacks to SUV enthusiasts craving premium models, these reductions touch almost every segment. It’s a festive gift from the government that could give the auto industry a much-needed boost in sales.
Disclaimer
All prices and details mentioned are based on official GST 2.0 revisions as of September 2025. Actual savings may vary depending on variant, location, and dealer offers. Buyers are advised to check with their nearest dealership for exact revised prices.
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