GST Rate Cut: Tata & Mahindra Cars Just Got a Lot Cheaper

TATA Motors and Mahindra have announced price cuts on several models, a move that comes in response to the recent reduction in GST rates on certain passenger vehicles. This article explains what these price cuts mean for you and how to make sure you get the best deal.

Understanding the GST Rate Reduction

GST Rate Reduction
GST Rate Reduction

On September 22, 2025, new GST rates will take effect. This is not a discount from the car companies; it’s a tax reduction mandated by the government. The price drop is a direct result of this lower tax component, and car manufacturers are legally required to pass this benefit on to consumers.

  • Don’t be fooled: Dealerships may try to present this as a special discount, but it’s your right to receive the full benefit of the tax reduction.
  • Negotiate further: The GST benefit is separate from any additional discounts. You should still bargain for other deals, cash discounts, or offers on top of the reduced price.

Price Changes: Tata Motors & Mahindra

Both Tata Motors and Mahindra have taken the lead in announcing their updated pricing, with some models seeing significant price drops. This move is a strategic way for them to attract customers ahead of the official September 22nd date.

Here’s a breakdown of the potential price reductions for popular models (all prices are ex-showroom, meaning on-road prices will be even lower due to reduced tax components on insurance and registration):

Manufacturer Model Old Tax Rate New Tax Rate Potential Price Reduction (Up to)
Tata Motors Tiago Not specified Not specified ₹75,000
Tigor Not specified Not specified ₹80,000
Altroz Not specified Not specified ₹1,10,000
Punch Not specified Not specified ₹85,000
Nexon Not specified Not specified ₹1,55,000
Harrier Not specified Not specified ₹1,04,000
Safari Not specified Not specified ₹1,45,000

Manufacturer Model Old Tax Rate New Tax Rate Potential Price Reduction (Up to)
Mahindra Bolero Neo 31% 18% ₹1.27 Lakh
XUV 3XO Petrol 29% 18% ₹1.40 Lakh
XUV 3XO Diesel 31% 18% ₹1.50 Lakh
Thar RWD 31% 18% ₹1.35 Lakh
Thar 4WD Diesel 48% 40% ₹1 Lakh
Scorpio Classic 48% 40% ₹1 Lakh
Scorpio N 48% 40% ₹1.45 Lakh
XUV 7OO 48% 40% ₹1.43 Lakh

Key Takeaways for Car Buyers

Car Buyers

  •  Your rights as a consumer. Do not let dealerships frame it as a special offer or an act of generosity.
  • Demand more: With the GST benefit already in place, dealerships may try to avoid offering additional discounts. Be prepared to negotiate fiercely. You should still be able to get cash discounts, corporate offers, or exchange bonuses.
  • Verify the price: The exact price reduction varies by model, variant, engine type, and fuel type (petrol, diesel, or electric). Always confirm the final on-road price with an authorised showroom.
  • Stay informed: While Tata and Mahindra have led the charge, other manufacturers like Maruti Suzuki are expected to follow suit. Be aware of the prices and offers from all companies before making a decision.
  • The market is shifting: This tax cut could increase footfall at dealerships. As demand goes up, dealerships might become less inclined to offer discounts. Stay vigilant and remember your rights.

Read Also: Unlock Huge Savings on Your Car Insurance: A Simple Guide

This is a great time to buy a new car. Just be sure to go in with the full knowledge of your rights as a consumer and a sharp eye for a good deal.

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