The Indian government’s recent reform of Goods and Services Tax (GST) slabs has reshaped the country’s automobile market. With cess removed and GST rates streamlined, car prices across segments have dropped noticeably. For buyers, this translates into real savings—ranging from a few tens of thousands on small hatchbacks to over two lakh rupees on premium SUVs.
Here’s a detailed look at more than ten popular models from Maruti Suzuki, Tata Motors, Hyundai, Kia, and Mahindra, showing their old and new prices, and exactly how much you save.
Why Prices Have Dropped
Earlier, cars attracted a flat 28% GST plus a variable cess (1% to as high as 22%), depending on engine size and dimensions. This pushed the effective tax rate anywhere between 29% and nearly 50%. The new GST framework removes the cess and applies simplified slabs—18% for small cars, 28% for mid-size, and 40% for large SUVs.
As a result, the overall tax burden has fallen, and manufacturers have passed the benefit directly to customers.
Car Price Reductions: Old vs New
| Model | Manufacturer | Old Ex-Showroom Price* | New Ex-Showroom Price* | Savings |
|---|---|---|---|---|
| Maruti Alto K10 | Maruti Suzuki | ₹4.23 – 6.21 lakh | Starts ₹3.70 lakh | Up to ₹1.07 lakh |
| Maruti Swift | Maruti Suzuki | ~₹6.5 – 9.5 lakh | Down by ₹70,000 – ₹1.06 lakh | Up to ₹1.06 lakh |
| Maruti Fronx | Maruti Suzuki | ₹7.58 lakh (base) | ₹6.85 lakh (base) | ₹74,000 |
| Maruti Grand Vitara | Maruti Suzuki | ~₹11.42 lakh | ~₹10.76 lakh | ₹1.07 lakh |
| Tata Tiago | Tata Motors | ~₹5.00 lakh+ | Reduced by ~₹75,000 | ~₹75,000 |
| Tata Punch | Tata Motors | ~₹8–9 lakh | Reduced by ~₹85,000 | ~₹85,000 |
| Tata Nexon | Tata Motors | ~₹8–15.6 lakh | Reduced by up to ₹1.55 lakh | ₹1.55 lakh |
| Tata Harrier | Tata Motors | ~₹17–20 lakh | Reduced by ~₹1.40 lakh | ₹1.40 lakh |
| Tata Safari | Tata Motors | ~₹25 lakh+ | Reduced by ~₹1.45 lakh | ₹1.45 lakh |
| Hyundai Creta | Hyundai | ~₹11.11 lakh | ~₹10.73 lakh | ₹70,000–₹75,000 |
| Kia Seltos | Kia | ~₹11–12 lakh | ~₹10.79 lakh | ~₹75,000 |
| Mahindra ICE SUVs (Thar, Scorpio-N, XUV700) | Mahindra | Prices varied by model | Discounts up to ₹2.5 lakh | Up to ₹2.5 lakh |
*Prices are approximate ex-showroom figures, based on Delhi; actuals vary by state and variant.
What Buyers Gain
- Small hatchbacks like Alto, Swift, Tiago, and Punch are seeing the biggest percentage drop (10–20%). These are now significantly more affordable for first-time car buyers.
- Compact SUVs like Fronx, Nexon, and Creta show meaningful savings in absolute terms, often ₹75,000 to ₹1.5 lakh.
- Large SUVs such as Harrier, Safari, and Mahindra’s big models benefit from removal of heavy cess, offering reductions up to ₹2.5 lakh—even if their GST slab is still higher.
- Luxury models outside this list, including full-sized SUVs, have also seen price cuts worth lakhs.
What This Means for the Market
- Festive season demand boost: Lower prices come just in time for the high-demand Diwali season. Expect higher footfalls at dealerships and better conversion rates.
- Higher competition among OEMs: With all major manufacturers slashing prices, buyers now have stronger negotiating power and more choices within the same budget.
- SUVs remain the star: While hatchbacks get larger percentage cuts, SUVs deliver bigger absolute savings, keeping them the top draw in showrooms.
Final Word
The GST reform has reset India’s car market. Whether you’re eyeing a budget hatchback like the Alto K10, a family SUV like the Nexon, or a premium ride like the Safari or XUV700, the new prices make ownership more accessible.
For buyers, this is one of the best times in recent years to bring home a new car.
