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New GST 2.0: Rate Cut on Cars & Bikes in India: Check Complete List 2025
The GST Council's approval of a revised tax structure for vehicles, effective September 22, 2025, aims to enhance India's automotive sector by simplifying taxes and stimulating demand. This overhaul lowers GST rates on various vehicles, including small cars and two-wheelers. As a result, numerous automakers are announcing substantial price reductions, benefiting consumers across the market.
Atul Bandhu
Updated Sep 19, 2025, 03:57 PM IST
GST Revision Effect: Car and Bike Prices Drop in India, Check Full List
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On September 3rd 2025, the GST Council approved the revised tax structure for vehicles. This change is scheduled to come into effect from September 22nd 2025 and its impact on vehicle prices is already visible across the market. This change in GST structure is also being considered, one of the most significant tax overhauls for the automobile sector in recent years.
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These GST reforms are not just about cheaper cars and bikes but are about simplifying the tax structure, driving demand while strengthening India’s automotive ecosystem at a time when the sector is looking for stable growth momentum. India’s automotive market is currently ranked third behind only trailing by US and China.
What Has Changed after GST 2.0?
Under the revised system, small cars - petrol, CNG or LPG under 1,200 cc and 4 metres in length and diesel cars up to 1,500 cc under 4 metres will now attract 18 percent GST, in comparison to the earlier effective tax that ranged between 28 percent and nearly 50 percent when cess was included.
Two-wheelers under 350 cc, the largest volume segment of the market, will also move to 18 percent from 28 percent.
The taxation on electric vehicles is capped at 5 percent.
On the other hand, the government has increased the GST rate for premium motorcycles above 350 cc to 40 percent, compared to the earlier 31 percent to 28 percent plus cess.
New GST 2.0
Here is a detailed list of GST revision benefits announced by automakers in the country:Cars Price Drop: Detailed List
| Model | Savings up to |
| Nissan Magnite | Rs 1 lakh |
| Honda Amaze 2nd Gen | Rs 72,800 |
| Honda Amaze 3rd Gen | Rs 95,500 |
| Honda Elevate | Rs 58,400 |
| Honda City | Rs 57,500 |
| Volkswagen Virtus | Rs 66,900 |
| Volkswagen Taigun | Rs 68,400 |
| Volkswagen Tiguan R Line | Rs 3,26,900 |
| Skoda Kodiaq | Rs 3.3 Lakh |
| Skoda Kushaq | Rs 66,000 |
| Skoda Slavia | Rs 63,000 |
| Mercedes GLA 220d 4MATIC AMG Line | Rs 3.80 Lakh |
| Mercedes C300 AMG Line | Rs 3.70 Lakh |
| Mercedes GLE 450 4MATIC | Rs 8 Lakh |
| Mercedes E-Class LWB 450 4MATIC | Rs 6 Lakh |
| Mercedes GLS 450d AMG Line | Rs 10 Lakh |
| Mercedes A200d | Rs 2.60 Lakh |
| Mercedes GLC 300 4MATIC | Rs 5.30 Lakh |
| Mercedes S 450 4MATIC | Rs 11 Lakh |
| BMW 2 Series Gran Coupe | Rs 1.6 lakh |
| BMW 3 Series LWB | Rs 3.4 lakh |
| BMW 5 Series LWB | Rs 4.1 lakh |
| BMW X1 | Rs 1.8 lakh |
| BMW X5 | Rs 6.3 lakh |
| BMW X7 | Rs 9 lakh |
| Audi Q3 | Rs 3.07 lakh |
| Audi A4 | Rs 2.64 lakh |
| Audi Q5 | Rs 4.55 lakh |
| Audi A6 | Rs 3.64 lakh |
| Audi Q7 | Rs 6.15 lakh |
| Audi Q8 | Rs 7.8 lakh |
| Mini Cooper Essential Pack | Rs 2.5 lakhs |
| Mini Cooper Classic Pack | Rs 2.75 lakhs |
| Mini Cooper Favoured Pack | Rs 3.0 lakhs |
| Mini Cooper JCW Pack | Rs 3.0 lakhs |
| JLR Range Rover | Rs 4.6 lakh to Rs 30.4 lakh |
| JLR Defender | Rs 7 lakh to Rs 18.6 lakh |
| JLR Discovery | Rs 4.5 lakh to Rs 9.9 lakh |
| Hyundai Nios | Rs 73,808 |
| Hyundai Aura | Rs 78,465 |
| Hyundai Exter | Rs 89,209 |
| Hyundai i20 | Rs 98,053 |
| Hyundai i20 N-Line | Rs 1,08,116 |
| Hyundai Venue | Rs 1,23,659 |
| Hyundai Venue N-Line | Rs 1,19,390 |
| Hyundai Verna | Rs 60,640 |
| Hyundai Creta | Rs 72,145 |
| Hyundai Creta N-Line | Rs 71,762 |
| Hyundai Alcazar | Rs 75,376 |
| Hyundai Tucson | Rs 2,40,303 |
| Tata Tiago | Rs 75,000 |
| Tata Tigor | Rs 80,000 |
| Tata Altroz | Rs 1,10,000 |
| Tata Punch | Rs 85,000 |
| Tata Nexon | Rs 1,55,000 |
| Tata Curvv | Rs 65,000 |
| Tata Harrier | Rs 1,40,000 |
| Tata Safari | Rs 1,45,000 |
| Mahindra Bolero/Neo | Rs 1.27 Lakh |
| Mahindra XUV3XO (Petrol) | Rs 1.40 Lakh |
| Mahindra XUV3XO (Diesel) | Rs 1.56 Lakh |
| Mahindra THAR 2WD (Diesel) | Rs 1.35 Lakh |
| Mahindra THAR 4WD (Diesel) | Rs 1.01 Lakh |
| Mahindra Scorpio Classic | Rs 1.01 Lakh |
| Mahindra Scorpio-N | Rs 1.45 Lakh |
| Mahindra Thar Roxx | Rs 1.33 Lakh |
| Mahindra XUV700 | Rs 1.43 Lakh |
| Kia Sonet | Rs 1,64,471 |
| Kia Syros | Rs 1,86,003 |
| Kia Seltos | Rs 75,372 |
| Kia Carens | Rs 48,513 |
| Kia Carens Clavis | Rs 78,674 |
| Kia Carnival | Rs 4,48,542 |
| Toyota Glanza | Rs 85,300 |
| Toyota Taisor | Rs 1,11,100 |
| Toyota Rumion | Rs 48,700 |
| Toyota Hyryder | Rs 65,400 |
| Toyota Innova Crysta | Rs 1,80,600 |
| Toyota Innova Hycross | Rs 1,15,800 |
| Toyota Fortuner | Rs 3,49,000 |
| Toyota Fortuner Legender | Rs 3,34,000 |
| Toyota Hilux | Rs 2,52,700 |
| Toyota Camry | Rs 1,01,800 |
| Toyota Vellfire | Rs 2,78,000 |
| MG Astor | Rs 54,000 |
| MG Hector | Rs 1,49,000 |
| MG Gloster | Rs 3,04,000 |
| Lexus ES 300h | Rs 1,47,000 |
| Lexus NX 350h | Rs 1,58,000 |
| Lexus RX 350h | Rs 2,10,000 |
| Lexus RX 500h | Rs 2,58,000 |
| Lexus LM 350h | Rs 5,77,000 |
| Lexus LX 500d | Rs 20,80,000 |
| Renault Triber | Rs 80,195 |
| Renault Kiger | Rs 96,395 |
| Renault Kwid | 55,095 |
Two-Wheelers Price Drop: Detailed List
| Model | Savings up to |
| Royal Enfield 350cc Lineup | Rs 22,000 |
| Yamaha R15 | Rs 17,581 |
| Yamaha MT15 | Rs 14,964 |
| Yamaha FZ-S Fi Hybrid | Rs 12,031 |
| Yamaha FZ-X Hybrid | Rs 12,430 |
| Yamaha Aerox 155 Version S | Rs 12,753 |
| Yamaha RayZR | Rs 7,759 |
| Yamaha Fascino | Rs 8,509 |
| Hero Destini 125 | Rs 7,197 |
| Hero Glamour X | Rs 7,813 |
| Hero HF Deluxe | Rs 5,805 |
| Hero Karizma 210 | Rs 15,743 |
| Hero Passion+ | Rs 6,500 |
| Hero Pleasure+ | Rs 6,417 |
| Hero Splendor+ | Rs 6,820 |
| Hero Super Splendor XTEC | Rs 7,254 |
| Hero Xoom 110 | Rs 6,597 |
| Hero Xoom 125 | Rs 7,291 |
| Hero Xoom 160 | Rs 11,602 |
| Hero Xpulse 210 | Rs 14,516 |
| Hero Xtreme 125R | Rs 8,010 |
| Hero Xtreme 160R 4V | Rs 10,985 |
| Hero Xtreme 250R | Rs 14,055 |
| Jawa 42 | Rs 13,511 |
| Jawa 350 | Rs 15,543 |
| Jawa 42 Bobber | Rs 16,367 |
| Jawa 42 Bobber (D/T) | Rs 16,417 |
| Jawa Perak | Rs 16,930 |
| Yezdi Roadster | Rs 16,404 |
| Yezdi Adventure | Rs 16,789 |
| Yezdi Scrambler | Rs 16,555 |
Market Implications
This recent GST overhaul simplifies taxation and directly makes a wide range of vehicles more affordable. While metro cities are expected to see an immediate impact, the bigger push could come from Tier-2 and Tier-3 cities and smaller towns, where price sensitivity is higher and festive season demand is traditionally strong.
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