New Delhi, Sep 18, 2025
Passing on the full benefit from the recent decrease in the GST rates on cars to customers, Maruti Suzuki announced a significant reduction in car prices across its portfolio on Thursday.
The largest reduction will be seen in entry-level models, with the Alto K10 and S-Presso going down by up to Rs 1.07 lakh and Rs 1.29 lakh, respectively.
Other hatchbacks, such as the Celerio, Wagon-R, and Ignis, will also see significant savings of between Rs 71,300 and Rs 1.29 lakh.
Additionally, prices of small SUVs will also go down.
The automaker reduced the prices of well-known models like the Brezza and Fronx by more than Rs 1 lakh, improving its standing in the fiercely competitive SUV market.
The timing of Maruti Suzuki’s price cuts is critical for the Indian auto industry, which has witnessed a four-month decline in passenger vehicle sales as automakers controlled dealer dispatches before the announcement of the updated goods and services tax (GST) rates.
According to several reports, steep discounts, due to GST reforms, will boost demand, especially in the compact and entry-level segments that serve first-time purchasers and city commuters.
Earlier, the GST Council approved the 5 and 18 per cent tax structure, scrapping the earlier four slab (5,12,18,1nd 28 per cent). This reform eliminates the previous compensation cess and streamlines the tax structure by primarily setting GST rates at 18 per cent for small cars and 40 per cent for larger or luxury vehicles. EVs continue to be taxed at a favourable 5 per cent GST rate.
Small, mass-market cars, including petrol vehicles with engines up to 1200cc and diesel vehicles up to 1500cc (both under 4 meters in length), receive the most significant tax cut.
Major Automobile companies, including Mahindra and Mahindra, Tata Motors, Hyundai, Toyota, Kia, Renault and other automakers have already announced price cuts across the models, passing on full benefits to the end consumers.(Agency)
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