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New GST rates for Mahindra, Tata and Maruti cars: The government has completely changed the GST rates on cars from 22 September 2025. This change has been made to create a simple and effective tax system, which will directly benefit the customers. Now the total tax on cars has been reduced drastically, which will reduce their prices significantly.
Details of new GST rates for Cars
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Small cars:
Cars with petrol, LPG or CNG engines (up to 1200cc) and less than 4 meters in length will now come under 18% GST instead of 28%. Similarly, small cars with diesel engines up to 1500cc will also now attract 18% GST instead of 31%. This will bring down the prices of small cars drastically.
Large cars and SUVs:
Cars with petrol engines above 1200cc or diesel engines above 1500cc, or cars longer than 4 metres have now come under a new and simpler tax slab. They were earlier taxed at 45-50%, which included 28% GST and 17-22% cess. Now this cess will be removed and a flat 40% GST will be levied on them. This will also reduce the price of these cars significantly.
Electric vehicles (EVs):
The 5% GST on electric cars will continue as before, so there will be no change in their prices. This move of the government is part of the plan to promote electric vehicles in the country.
Other vehicles:
GST on commercial vehicles, buses and trucks has also been reduced from 28% to 18%. Motorcycles with engines less than 350cc will also now attract 18% GST.
Impact on major companies: How much will Mahindra, Tata, and Maruti cars become cheaper?
The biggest beneficiaries of the new GST rates will be major Indian companies like Maruti, Tata, and Mahindra, as their portfolio includes both small and big cars.
Maruti Suzuki
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Maruti Suzuki sells the most small cars in India, so the company will get the most benefit from this.
- Cars that will become cheaper: The prices of popular cars like Alto K10, WagonR, Swift, Baleno, Dzire, Celerio and Fronx will come down significantly.
- Estimated price reduction: The prices of these cars are expected to be reduced by about ₹40,000 to ₹80,000.
Tata Motors (Tata Motors)
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Compact SUVs like Tata Motors Nexon and Punch will also be cheaper with the new rates, as they are less than 4 meters.
- Cars that will become cheaper: Tiago, Tigor, Altroz, Punch and Nexon will get a big benefit.
- Estimated price reduction: Tata Motors has announced a price cut, under which Nexon will get a reduction of up to ₹ 1.55 lakh.
Mahindra
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The new rates will affect both Mahindra's compact SUVs and large SUVs.
- Cars that will become cheaper: XUV300 (now called XUV 3XO) will get a lot of benefit as it is less than 4 meters. is.
- Big Cars: Popular SUVs like Mahindra's Thar, Scorpio and XUV700 will also now attract 40% GST, which will also reduce their prices.
Also Read: Top Electronics Set to Get Cheaper with New GST Rules
About the Author:
Kaif Ansari
I'm a sports Writer with five years of experience, specializing in cricket and a variety of other sports like football, hockey, badminton, and kabaddi. My journey in sports journalism began in 2021 with Possible11, where I've been contributing ever since. My lifelong passion for cricket, ignited by a childhood dream of becoming a cricketer, fuels my writing. While the playing field wasn't my destiny, I found my calling in sharing the thrill of the game through words. I'm a dedicated CSK fan, and my favorite players are Virat Kohli and MS Dhoni.
Beyond the world of sports, I'm also deeply immersed in internet culture, movies, games, and technology. I enjoy creating content that explores these diverse interests, offering unique perspectives and insights. Whether it's breaking down the latest tech trends, diving deep into cinematic universes, or dissecting game strategies, I love to share my enthusiasm with a wider audience.
