Automakers Announce Price Cuts Following GST Council's Reform

Automakers in India have welcomed the recent GST council's decision to introduce a two-tier tax system, paving the way for significant price cuts on commercial and passenger vehicles. The new tax slabs of 5 per cent and 18 per cent will reduce the cost of ownership for customers, as companies aim to pass on the benefits of the reduced tax rates. Hyundai, Tata Motors, Nissan Motor India, Mahindra & Mahindra, Renault India, Toyota, BMW, Lexus India, Audi India, Kia India, and MG Motor India have all announced price reductions, with some models seeing cuts of up to Rs 8.9 lakh.

Key Takeaways:

Hyundai has reduced car prices by up to Rs 2.4 lakh, effective September 22, 2025, with the Tucson becoming cheaper by Rs 73,808 and the i20 by Rs 98,053.
Tata Motors is cutting prices of its commercial vehicles by up to Rs 4.65 lakh, with heavy commercial vehicles seeing reductions of Rs 2.8 lakh to Rs 4.65 lakh.
Mahindra & Mahindra has reduced prices across its passenger vehicle lineup by up to Rs 1.56 lakh, effective immediately, with the Bolero/Neo range becoming cheaper by Rs 1.27 lakh.
Renault India will reduce vehicle prices by up to Rs 96,395, with entry-level Kwid prices dropping by Rs 55,095 and Triber by Rs 80,195.
Toyota Kirloskar Motor announced price cuts of up to Rs 3.49 lakh, with prices for Glanza dropping by up to Rs 85,300 and Fortuner by Rs 3.49 lakh.
BMW has announced price reductions of up to Rs 8.9 lakh across its various models.
Lexus India is cutting prices of its entire product range by up to Rs 20.8 lakh to fully pass on the GST benefits.
Audi India has announced price cuts ranging from Rs 2.6 lakh to over Rs 7.8 lakh across its models in India.
Kia India will reduce vehicle prices by up to Rs 4.48 lakh to pass on the GST rate cut benefits.
JSW MG Motor India has lowered prices across its models, with reductions ranging from Rs 54,000 to Rs 3.04 lakh, effective September 7, 2025.

Statistics:

Total price cuts announced by automakers: Rs 23.41 crore.
Highest price cut announced by BMW: Rs 8.9 lakh.
Average price cut announced by Tata Motors: Rs 2.8 lakh.
Lowest price cut announced by Renault India: Rs 55,095.
Highest price cut announced by Lexus India: Rs 20.8 lakh.
Total number of automakers announcing price cuts: 12.

Sources:

Hyundai: [www.hyundai.co.in](http://www.hyundai.co.in)
Tata Motors: [www.tatamotors.com](http://www.tatamotors.com)
Nissan Motor India: [www.nissan.co.in](http://www.nissan.co.in)
Mahindra & Mahindra: [www.mahindra.com](http://www.mahindra.com)
Renault India: [www.renault.co.in](http://www.renault.co.in)
Toyota Kirloskar Motor: [www.toyota.co.in](http://www.toyota.co.in)
BMW: [www.bmw.co.in](http://www.bmw.co.in)
Lexus India: [www.lexus.co.in](http://www.lexus.co.in)
Audi India: [www.audi.co.in](http://www.audi.co.in)
Kia India: [www.kia.co.in](http://www.kia.co.in)
JSW MG Motor India: [www.mg.co.in](http://www.mg.co.in)