Impact of New GST Rates on Car Prices in India 2025 English हिन्दी Impact of New GST Rates on Car Prices (Effective September 22, 2025) The Indian government has revised the GST rates for automobiles, leading to significant price adjustments across car segments. Small Cars Small cars (petrol up to 1200cc or diesel up to 1500cc, both under 4 meters in length) will now attract 18% GST, reduced from 28% plus 1-3% cess. This change could make cars cheaper by ₹60,000 – ₹1 lakh. Beneficiaries include Maruti Suzuki Swift, Hyundai i20 N Line, Wagon R, and Tata Tiago . Larger and Luxury Vehicles Larger cars and SUVs now face a flat 40% GST, replacing the previous 28% plus 17-22% cess. Despite the higher GST, removal of cess reduces the overall burden, cutting prices by 3–10%. Examples: Hyundai Creta, Mahindra XUV700, Toyota Fortuner . Electric Vehicles (EVs) EVs continue with 5% GST and no cess, keepi...
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