# List of Cars That Become Cheaper Under GST 2.0: Your Guide to Big Savings on Wheels
| September 24, 2025**
India's automotive market just hit the accelerator with GST 2.0 reforms kicking in on September 22, 2025—just in time for Navratri and Diwali shopping sprees. The GST Council's overhaul slashed slabs from four (5%, 12%, 18%, 28%) to two main ones (5% and 18%), plus a 40% luxury tier, while axing the pesky compensation cess that once bloated car prices by 1-22%. The result? Nearly every car on the road is cheaper, but small cars (under 4 meters, petrol/CNG/LPG up to 1200cc or diesel up to 1500cc) see the biggest windfall—GST dropping from 28% to 18%, translating to 10-12% off ex-showroom prices. Mid-size and luxury models benefit too, thanks to cess removal, despite a 40% slab hike for larger vehicles.
This isn't just tax trivia—it's a boon for first-time buyers, families, and EV enthusiasts. Maruti Suzuki, Tata, Hyundai, and others are passing on full benefits, with savings up to ₹3.5 lakh on some models. As PM Modi tweeted, these changes could save households ₹2.5 lakh crore annually, supercharging "ease of doing business." But not all wheels turn equally: Larger hybrids and ultra-luxury rides might see marginal hikes. Here's a curated list of popular cars getting cheaper, with estimated savings (ex-showroom, Delhi; actuals vary by variant/state—check dealers).
## Small Cars: The Real Stars of GST 2.0 Savings
These budget-friendly hatchbacks and sub-compact SUVs—India's volume kings—score the deepest cuts. With GST at 18% (no cess), expect ₹40,000-₹1 lakh off, plus lower EMIs (₹600-₹2,000/month drop). Sales of small cars, down 5% YoY, could rebound 15-20% this festive season.
| Car Model | Brand | Old Price (Ex-Showroom, Base) | New Price (Est.) | Savings (Est.) |
|-----------|-------|-------------------------------|------------------|----------------|
| **Alto K10** | Maruti Suzuki | ₹3.99 lakh | ₹3.70-₹3.92 lakh | ₹40,000-₹67,000 |
| **Swift** | Maruti Suzuki | ₹6.49 lakh | ₹5.82-₹6.09 lakh | ₹40,000-₹67,000 |
| **Punch** | Tata | ₹6.00 lakh | ₹5.40-₹5.60 lakh | ₹40,000-₹60,000 |
| **Kwid** | Renault | ₹4.70 lakh | ₹4.30-₹4.50 lakh | ₹40,000-₹50,000 |
| **i20** | Hyundai | ₹7.04 lakh | ₹6.37-₹6.64 lakh | ₹40,000-₹67,000 |
| **Baleno** | Maruti Suzuki | ₹6.66 lakh | ₹6.00-₹6.26 lakh | ₹40,000-₹66,000 |
| **3XO** | Mahindra | ₹7.49 lakh | ₹6.74-₹7.09 lakh | ₹40,000-₹75,000 |
*Pro Tip*: Add CNG variants for extra perks—GST stays at 18%, and fuel savings amplify the deal.
## Compact & Mid-Size SUVs: Family Haulers Get a Boost
Sub-4m crossovers and compact SUVs (like Nexon) were already hot sellers; now they're hotter with 8-10% drops. Larger ones (over 4m, under 1500cc diesel/petrol) shift to 40% GST but gain from no cess, netting 2-5% savings.
| Car Model | Brand | Old Price (Ex-Showroom, Base) | New Price (Est.) | Savings (Est.) |
|-----------|-------|-------------------------------|------------------|----------------|
| **Nexon** | Tata | ₹8.00 lakh | ₹7.20-₹7.60 lakh | ₹40,000-₹80,000 |
| **Venue** | Hyundai | ₹7.94 lakh | ₹7.15-₹7.54 lakh | ₹40,000-₹79,000 |
| **Sonet** | Kia | ₹7.99 lakh | ₹7.19-₹7.59 lakh | ₹40,000-₹80,000 |
| **Brezza** | Maruti Suzuki | ₹8.34 lakh | ₹7.95-₹8.34 lakh (marginal) | ₹20,000-₹39,000 |
| **Creta** | Hyundai | ₹11.00 lakh | ₹10.45-₹10.89 lakh | ₹55,000-₹1.1 lakh |
| **Thar Roxx** | Mahindra | ₹12.99 lakh | ₹12.34-₹12.89 lakh | ₹65,000-₹1.3 lakh |
| **Virtus** | Volkswagen | ₹11.56 lakh | ₹11.00-₹11.50 lakh | ₹56,000-₹1.12 lakh |
X users are buzzing: One viral post from @rishibagree hailed "BIG SAVINGS ALERT" on small cars, racking up 500+ likes.
## Luxury & Large SUVs: Aspirational Rides Trimmed Down
Big boys like Fortuner and GLS? Their 40% slab replaces a 43-50% effective rate (28% GST + 15-22% cess), yielding 3-10% off. Strong hybrids (e.g., Innova Hycross) save 3% via cess abolition. Audi, BMW, and Mercedes are slashing up to ₹7.8 lakh.
| Car Model | Brand | Old Price (Ex-Showroom, Base) | New Price (Est.) | Savings (Est.) |
|-----------|-------|-------------------------------|------------------|----------------|
| **Fortuner** | Toyota | ₹33.78 lakh | ₹32.00-₹33.00 lakh | ₹1-1.78 lakh |
| **GLS** | Mercedes-Benz | ₹1.37 crore | ₹1.30-₹1.35 crore | ₹2-7 lakh |
| **X5** | BMW | ₹1.04 crore | ₹99-102 lakh | ₹2-5 lakh |
| **Q6** | Audi | ₹1.07 crore | ₹1.02-₹1.05 crore | ₹2-5 lakh |
| **Scorpio N** | Mahindra | ₹13.99 lakh | ₹12.99-₹13.49 lakh | ₹50,000-₹1 lakh |
| **Innova Hycross** | Toyota | ₹19.94 lakh | ₹19.34-₹19.74 lakh | ₹60,000-₹1.2 lakh |
## EVs: Green Machines Stay Affordable
Electric vehicles hold steady at 5% GST—unchanged but a steal compared to ICE siblings. Tata Punch EV and Nexon EV could dip further with component tax cuts.
| Car Model | Brand | Old Price (Ex-Showroom, Base) | New Price (Est.) | Savings (Est.) |
|-----------|-------|-------------------------------|------------------|----------------|
| **Punch EV** | Tata | ₹10.99 lakh | ₹10.50-₹10.80 lakh | ₹19,000-₹49,000 |
| **Nexon EV** | Tata | ₹14.49 lakh | ₹13.90-₹14.30 lakh | ₹59,000-₹1.19 lakh |
## Broader Impact: Why This Matters for You and the Economy
GST 2.0 isn't just about cars—it's a ₹2.5 lakh crore consumer stimulus amid US tariff threats. Auto sales, flat at 3.5 million units in FY25, could surge 10-15%, per SIAM estimates. Lower RTO fees (on ex-showroom) and insurance (GST to 5%) sweeten the pot. On X, #GST2Savings is trending, with users like @TheRealDharm calling it a "BIG SAVINGS ALERT" for small cars.
Caveats: Larger hybrids (>4m) jump to 40% (up 3-5%), and tobacco-linked perks? Nah. Prices are indicative—factor in state taxes.
## Ready to Roll? Act Now
With showrooms buzzing, this is prime time to upgrade. Head to a dealer for test drives; festive offers could stack another 5-10%. As one X post quipped, "GST 2.0: Because who doesn't love a cheaper ride to Diwali dhamaka?" Your wallet (and garage) will thank you.
