The GST rate cut 2025 has given a major boost to car buyers in India. On September 4, 2025, the government announced the biggest indirect tax reform since GST was first implemented in 2017. The earlier four tax slabs (5%, 12%, 18%, and 28%) have now been simplified into two: 5% for essentials and 18% for discretionary goods. A new 40% GST slab was also introduced for luxury and tobacco products.
As part of the reform, the GST Council redefined the way cars are taxed:
- Small Cars (under 4 meters, petrol engines below 1,200cc or diesel below 1,500cc) → 18% GST
- Luxury Cars / Bigger Cars (above 4 meters, larger engines) → 40% GST
- Electric Vehicles (EVs) → Continue to enjoy the lowest 5% GST
Maruti Suzuki – The Biggest Winner of GST Rationalisation
As India’s largest carmaker, Maruti Suzuki is the biggest beneficiary of the GST cut. The brand sells a wide range of small cars and budget-friendly hatchbacks, which now fall under the 18% GST slab. This has significantly reduced the Maruti Suzuki new car prices in 2025, making them more affordable for buyers.
Maruti Suzuki New Car Prices After GST Cut (2025)
- Alto K10 – Price reduced by ₹1,07,600 → New Price: ₹3,69,900
- S-Presso – Price reduced by ₹1,29,600 → New Price: ₹3,49,900
- Celerio – Price reduced by ₹94,100 → New Price: ₹4,69,900
- Wagon-R – Price reduced by ₹79,600 → New Price: ₹4,98,900
- Ignis – Price reduced by ₹71,300 → New Price: ₹5,35,100
- Swift – Price reduced by ₹84,600 → New Price: ₹5,78,900
- Baleno – Price reduced by ₹86,100 → New Price: ₹5,98,900
- Tour S – Price reduced by ₹67,200 → New Price: ₹6,23,800
- Dzire – Price reduced by ₹87,700 → New Price: ₹6,25,600
- Fronx – Price reduced by ₹1,12,600 → New Price: ₹6,84,900
- Brezza – Price reduced by ₹1,12,700 → New Price: ₹8,25,900
- Ertiga – Price reduced by ₹46,400 → New Price: ₹8,80,000
- Grand Vitara – Price reduced by ₹1,07,000 → New Price: ₹10,76,500
- XL6 – Price reduced by ₹52,000 → New Price: ₹11,52,300
- Jimny – Price reduced by ₹51,900 → New Price: ₹12,31,500
- Invicto – Price reduced by ₹61,700 → New Price: ₹24,97,400
- Eeco – Price reduced by ₹68,000 → New Price: ₹5,18,100
- Super Carry – Price reduced by ₹52,100 → New Price: ₹5,06,100
What It Means for Car Buyers in 2025
With the Maruti Suzuki car price drop in 2025, buyers now have a chance to own their favorite hatchbacks and SUVs at significantly lower prices. Entry-level models like the Alto K10 and S-Presso are more affordable than ever, while premium models like the Grand Vitara and Brezza also see attractive price cuts.
This GST reform is expected to boost demand for small cars and further strengthen Maruti Suzuki’s dominance in India’s automobile market.
