Popular models like the XUV700, Kia Syros, Tata Punch and many others are now more than Rs 1 lakh cheaper.
22 Sep 2025 | 3223 Views | By Akbar Merchant
The updated GST slabs for new cars and SUVs came into effect today, triggering widespread price cuts across hatchbacks, SUVs, and luxury cars. Almost every major brand in India has revised prices of models that spread under the new GST 2.0 slabs, with additional festive discounts making new cars even ...
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The updated GST slabs for new cars and SUVs came into effect today, triggering widespread price cuts across hatchbacks, SUVs, and luxury cars. Almost every major brand in India has revised prices of models that spread under the new GST 2.0 slabs, with additional festive discounts making new cars even more affordable.
Under the revised GST 2.0 tax structure, petrol cars and SUVs with engines up to 1,200cc, and diesel vehicles with engines up to 1,500cc and length under 4,000mm, now fall into the 18 percent GST bracket—down from the earlier 28 percent. Cars and SUVs with bigger engine displacements and are longer than 4000mm don’t meet these criteria attract a flat 40 percent GST, replacing the earlier 28 percent GST plus a cess of up to 22%, which often pushed effective taxation close to 50%.
To amplify the effect, carmakers are stacking additional offers on top of tax-driven reductions. Here are the top 10 biggest price cuts on cars and SUVs priced below Rs 30 lakh:
1. Mahindra Bolero & Bolero Neo – Up to Rs 2.56 lakh off
The rugged Bolero and the newer Bolero Neo, both powered by a 1.5-litre diesel engine, remain a strong choice in tier-2 and tier-3 markets, as well as among government fleets. Benefits now extend up to Rs 2.56 lakh depending on variant.
2. Mahindra XUV3XO – Up to Rs 2.46 lakh off
Rivaling the Tata Nexon, Maruti Brezza, Kia Sonet and Hyundai Venue, the updated XUV3XO offers multiple petrol and diesel options with a rich feature list. Select variants get reductions of up to Rs 2.46 lakh.
3. Mahindra XUV700 – Rs 2.24 lakh off
The XUV700, a popular three-row SUV with powerful petrol and diesel engines and multiple seating options, is due for a facelift soon. Current stock carries discounts worth Rs 2.24 lakh.
4. Mahindra Scorpio & Scorpio N – Up to Rs 2.15 lakh off
The Scorpio Classic and Scorpio N continue to appeal to buyers seeking rugged SUVs with proven petrol and diesel engines. Both now come with benefits of up to Rs 2.15 lakh.
5. Kia Syros – Up to Rs 1.86 lakh off
Kia’s second compact SUV, the Syros, stands out with its boxy design and clever interior packaging. Discounts of up to Rs 1.86 lakh are now available depending on variant.
6. Kia Sonet – Up to Rs 1.64 lakh off
Positioned against the Nexon, Venue, and Brezza, the Sonet sees benefits of up to Rs 1.64 lakh thanks to GST 2.0 revisions and festive offers.
7. Volkswagen Taigun & Virtus 1.5 – Up to Rs 1.63 lakh off
Both the Taigun SUV and Virtus sedan with the 1.5-litre TSI engine benefit from reductions of up to Rs 1.63 lakh, offering buyers European build quality and strong performance at lower prices.
8. Tata Punch – Up to Rs 1.58 lakh off
One of India’s highest-selling cars, the Tata Punch becomes more attractive with cuts of up to Rs 1.58 lakh, making it a stronger rival to the Hyundai Exter and Citroën C3.
9. Mahindra Thar & Thar Roxx – Up to Rs 1.55 lakh off
The Thar and Thar Roxx, known for their rugged styling and off-road abilities, are now cheaper by up to Rs 1.55 lakh. A facelift for the three-door Thar is also on the horizon.
10. Tata Harrier & Safari – Rs 1.43 lakh off
The Harrier and Safari, both powered by Stellantis-sourced 2.0-litre diesel engines, see cuts of up to Rs 1.43 lakh. The SUVs remain popular for their size, features, and road presence.