Automakers Slash Prices Ahead of Festive Season Post-GST Reduction

In a significant move to stimulate demand during the upcoming festive season, several automakers in India have announced substantial price reductions on their vehicle models. This follows the government's recent Goods and Services Tax (GST) rate cuts, effective from September 22, 2025.

Key Price Reductions:

Kia India: The company has reduced prices by ₹48,513 to ₹4.48 lakh across its range, with the Carnival MPV seeing the steepest cut.

JSW MG Motor India: Price reductions range from ₹54,000 to ₹3.04 lakh, effective from September 7.

TVS Motor Company: The company is extending benefits of the lower duties across its internal combustion engine (ICE) range, describing the rate rationalisation as a move that will accelerate consumption.

Lexus: The luxury carmaker announced the sharpest savings, with prices down by ₹1.47 lakh on the ES 300h sedan and up to ₹20.8 lakh on the flagship LX 500d SUV.

Impact on the Indian Market:

These price cuts are expected to boost consumer sentiment and drive sales during the festive season, traditionally a peak period for automobile purchases. The reductions make vehicles more affordable, potentially leading to increased demand across various segments, including compact cars, SUVs, and luxury vehicles. Additionally, the move aligns with the government's efforts to promote domestic consumption and support the automotive industry.

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Our Recent FAQS

Frequently Asked Question &
Answers Here

Q1: What is the GST rate cut announced by the government?

The government has reduced the GST rate on small cars and two-wheelers to 18% from 28%, while the effective tax on large-engine capacity cars and SUVs has been lowered to 40% as an additional levy was dropped.

Q2: When will these price reductions take effect?

The price reductions will be effective from September 22, 2025, coinciding with the implementation date of the revised GST rates.

Q3: Which automakers have announced price cuts?

Automakers including Kia India, JSW MG Motor India, TVS Motor Company, and Lexus have announced price reductions on their vehicle models.

Q4: How significant are the price reductions?

Price reductions vary across models, with some vehicles seeing cuts up to ₹20.8 lakh, particularly in the luxury segment.

Q5: How will this impact consumers?

Consumers can expect more affordable vehicle options, potentially leading to increased sales during the festive season. The reductions may also encourage consumers who were previously hesitant due to high prices to make purchases.

Q6: What is the expected impact on the automotive industry?

The price cuts are expected to boost demand, improve dealer inventories, and support the overall growth of the automotive sector during the festive period.