8 Sept 2025
Effective September 22nd, car makers in India are offering rate cuts proportional to the GST reduction.
Mahindra, Toyota, Hyundai, Tata Motors, Renault, BMW, and Mercedes-Benz have announced significant rate cuts effective September 22nd. Petrol, CNG, and LPG variants with a length of up to 4 metres and an engine capacity of up to 1200cc will have an 18% GST rate applicable, instead of the earlier 28%. Diesel variants with an engine capacity of up to 1500cc and a length of up to 4 metres will also attract an 18% GST.
Petrol, CNG, and LPG cars longer than 4 metres or with an engine capacity above 1200cc or diesel cars above 1500cc will be eligible for a 40% GST instead of the earlier 50% (=28% GST and 17-22% compensation cess).
These car makers in India have announced benefits up to:
Mahindra: ₹1-1.56 lakh
Hyundai: ₹2.4 lakh
Tata Motors: ₹1.55 lakh
Toyota: ₹3.49 lakh
Skoda: ₹5.8 lakh
Renault: ₹96,000
BMW: ₹8.9 lakh
Mercedez-Benz: ₹2.6-11 lakh
Kia: ₹75,000
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