Leading sports utility vehicle (SUV) maker Mahindra & Mahindra (M&M) will pass on the full GST benefits to customers across its entire ICE SUV portfolio. This follows the announcement of GST 2.0 at the 56th GST Council meeting held on September 3.
Prices of Mahindra SUVs will see a reduction by up to Rs 1.01 lakh (Thar 4WD) and up to Rs 1.56 lakh (XUV 3XO Diesel). The benefits will be available to customers on the ICE portfolios starting from September 6. Prices of Mahindra’s Bolero/Neo will see a reduction by up to Rs 1.27 lakh, XUV 3XO Petrol up to Rs 1.40 lakh, Thar 2WD (Diesel) up to Rs 1.35 lakh, Scorpio Classic up to Rs 1.01 lakh, Scorpio N up to Rs 1.45 lakh, Thar Roxx up to Rs 1.33 lakh and XUV700 up to Rs 1.43 lakh.
Toyota Kirloskar Motor (TKM) also announced that it will fully pass on the benefits of the recent GST rate reduction to its customers. The revised prices will come into effect from September 22. “Ahead of the festive season we expect this step will provide strong momentum and further accelerate demand,” said Varinder Wadhwa, Vice President, Sales-Service-Used Car Business & Profit Enhancement at TKM.
Toyota’s Hyryder will see a price cut of up to Rs 65,400, Innova Crysta a price cut of up to Rs 180,600 and Hycross a price cut of up to Rs 115,800. Fortuner SUV price is reduced by Rs 349,000 while Legender sees a price reduction of up to Rs 334,000.
Renault India also announced that it will fully pass on the benefits of GST 2.0 across its entire product portfolio. The revised pricing, with reductions of up to ₹96,395, will be effective on all deliveries made on or after September 22, coinciding with the first day of Navratri. However, customers can start booking their Renault car at the new prices immediately across all dealerships nationwide.
Venkatram Mamillapalle, Managing Director of Renault India, said: "Passing on the full GST 2.0 benefit is a reflection of our unwavering commitment to our customers. We believe this timely initiative will not only make our cars more accessible but also energize demand during the festive season. It’s a step forward in our mission to deliver innovation, value, and trust to every Indian household.”
Tata Motors on Friday announced that it will pass on the full benefit of the recent GST reduction on its cars and SUVs to customers, effective September 22, the date the revised GST rates come into effect. With this, prices of Tata Motors’ most affordable model Tiago will get cheaper by up to Rs 75,000 and prices of sub-4 metre SUV Nexon will see the maximum reduction of up to Rs 155,000.
Luxury carmakers such as BMW and Mercedes Benz have announced steeper price cuts. BMW announced that its flagship X7 SUV will now cost about Rs 9 lakh less while its popular X1 SUV sees a price cut of Rs 1.80 lakh.
The Goods and Services Tax (GST) Council on Wednesday reduced levies on small cars and mass-market motorcycles (engine size below 350cc) from 28% to 18%. However, premium cars, including sports utility vehicles (SUVs), will now attract a 40% GST. The Council made no changes to the GST rate for electric vehicles (EVs) across segments.
At present, passenger vehicles fall under the 28% tax slab and a cess. Small cars are taxed at 28%, while large cars (above 4 metres in length and 1200CC engine capacity) face a combined rate (GST plus cess) of 43-50%. Under the new regime, large cars will be taxed at a flat 40% with no cess.
Since the announcement of GST reforms last month, buyers have been delaying purchases in anticipation that prices may decline up to 8-10%. This has severely impacted the sales of automobiles since mid-August.
Among two-wheeler makers, Classic Legends, which sells Jawa, Yezdi and BSA bikes, said it will also be extending the full benefits of GST 2.0 rationalisation in after-sales components to its patrons, bringing down cost of ownership considerably. This will make Jawa and Yezdi bikes cheaper between Rs 13,500 and 17,000.
“The government’s bold and timely GST reforms will bring a tectonic shift for the greater good, echoing the historic transition from 2-stroke to 4-stroke engines. While it raises the tax burden for higher cc motorcycles such as our 652cc BSA Gold Star, we accept it as the hallmark of progressive taxation. The trade-off makes mid-segment bikes accessible to a larger rider community -- a win for India’s motorcycling culture,” said Anupam Thareja, Co-founder of Jawa Yezdi Motorcycles.