In a major push to transfer the gains of the recent Goods and Services Tax (GST) cuts, Hyundai Motor India and Tata Motors have slashed prices heavily across their models. The new prices will take effect from September 22, 2025, and are expected to make vehicles more affordable for customers, while also generating sales in the approaching festive season.
Hyundai has reduced the prices of all its passenger vehicles, with cuts ranging from Rs. 60,640 to Rs. 2.4 lakh, varying by model. Some of the key changes are:
Grand i10 Nios: Rs. 73,808 cut
Aura: Rs. 78,465 cut
i20: Up to Rs. 98,000 cut
Venue: Rs. 1.23 lakh cut
Creta: Rs. 72,145 cut
Tucson: Rs. 2.4 lakh cut
These price reductions are due to the lowering of the GST for small cars from 28% to 18%, and on big cars and SUVs to a uniform 40%, from September 22. Hyundai has officially announced that it will pass on the full GST advantage to its customers.
Tata Motors is also reducing prices across its entire passenger vehicle range, with reductions ranging from Rs. 75,000 to Rs. 1.55 lakh. The most significant reductions are:
Tiago: Rs. 75,000 cut
Nexon: Rs. 1.55 lakh cut
Safari: Rs. 1.45 lakh cut
Harrier: Rs. 1.40 lakh cut
Altroz: Up to Rs. 1.12 lakh cut
All of these cuts are in line with the new GST rates, and Tata Motors has committed to passing on the entire benefit to customers.
The GST rate reductions and related price drops are likely to drive consumer demand, particularly during the festival season. The Federation of Automobile Dealers Association (FADA) forecasts higher auto retail sales, as reduced prices make cars more affordable to a broader range of consumers.
Furthermore, the stock market has responded positively to this news, with shares of Hyundai, Tata Motors, and Mahindra & Mahindra gaining on the announcement of price reductions.[
As the festive season approaches, the timing of the price cuts positions Hyundai and Tata Motors to attract a large number of buyers. Reforms implemented by the government through GST have allowed consumers to purchase vehicles at lower rates, saving lakhs of rupees.
Potential buyers are motivated to maximize these savings by selecting their vehicle choices before the September 22 implementation date.