GST Reduction on Cars in India: How It Impacts Car Prices, Insurance, and Your Wallet
DETAILS
New Car GST Rates in 2025: What Changed?
|
Vehicle Type
|
Old GST + Cess
|
New GST Rate (2025)
|
Effective Price Cut
|
|
Small Petrol
|
~29%
|
18%
|
~11 points lower
|
|
Small Diesel
|
~31%
|
18%
|
~13 points lower
|
|
Mid-size Cars
|
~45%
|
40%
|
~5 points lower
|
|
Large Cars
|
~48%
|
40%
|
~8 points lower
|
|
Big SUVs
|
~50%
|
40%
|
~10 points lower
|
|
Electric Vehicles (EVs)
|
5%
|
5%
|
No change
|
How Popular Car Brands Are Affected
|
Brand
|
Model
|
Price Before (₹)
|
Price After (₹)
|
|
Hyundai
|
Tucson
|
~33.9 lakh
|
~31.5 lakh
|
|
Hyundai
|
Creta
|
~13.2 lakh
|
~12.5 lakh
|
|
Hyundai
|
Grand i10 Nios
|
~7.5 lakh
|
~6.8 lakh
|
|
Tata Motors
|
Nexon
|
~12.7 lakh
|
~11.2 lakh
|
|
Tata Motors
|
Harrier
|
~18.4 lakh
|
~17.0 lakh
|
|
Mahindra
|
XUV700
|
~23 lakh
|
~21.6 lakh
|
|
Mahindra
|
Thar
|
~16.3 lakh
|
~15.0 lakh
|
|
Toyota
|
Fortuner
|
~56 lakh
|
~52.5 lakh
|
|
Skoda
|
Kodiaq
|
~43 lakh
|
~39.7 lakh
|
|
Audi
|
Q5
|
~73 lakh
|
~65.2 lakh
|
GST Savings Across Indian Metros
- Road Tax: 4–10%
- Example: A car that was ₹11.1 lakh is now ₹10.7 lakh.
- Savings: ₹3,830 on road tax.
- Road Tax: 11–13%
- Example: A ₹12 lakh car now costs ₹11.5 lakh.
- Savings: ₹6,000.
- Road Tax: 13–20%
- Example: A ₹12 lakh car drops to ₹11.5 lakh.
- Savings: ₹8,500.
- Road Tax: 10% (with minimum slabs by cc)
- Example: A ₹12 lakh car now ₹11.5 lakh.
- Savings: ₹5,000.
- Road Tax: 12–20%
- Example: ₹12 lakh → ₹11.5 lakh.
- Savings: ₹9,000.
- Road Tax: 13–21%
- Example: ₹12 lakh → ₹11.5 lakh.
- Savings: ₹6,000.
GST Cuts and Car Insurance: Before vs After
|
Car Type
|
Avg. Price
|
Premium Before
|
Premium Now
|
Savings
|
|
Small Cars
|
₹5–7 lakh
|
₹15,000
|
₹13,200
|
~₹1,800
|
|
Mid-size Cars
|
₹8–15 lakh
|
₹25,000
|
₹22,000
|
~₹3,000
|
|
Luxury Cars
|
₹30+ lakh
|
₹75,000
|
₹66,000
|
~₹9,000
|
|
EVs
|
₹10–20 lakh
|
₹20,000
|
₹17,600
|
~₹2,400
|
How to Make the Most of the New GST Era
Key Takeaways
- Small cars enjoy the steepest cut: from ~29–31% down to 18%.
- SUVs and mid-size cars are now taxed at a flat 40%, simplifying the process.
- Luxury imports still face higher cess, but prices are lower overall.
- Car insurance premiums have dropped slightly thanks to lower IDV.
- Buyers in metros save on both road tax + insurance premiums.
Latest News
Most Popular Brands
View ALL BrandsLatest cars
Rs.20 Lakh - 26 Lakh
Rs.17.99 Lakh - 24.99 Lakh
Rs.8 Lakh - 15 Lakh
Rs.9.99 Lakh - 18.31 Lakh
Rs.17.50 Lakh - 23.94 Lakh
Upcoming cars
Rs.20 Lakh - 26 Lakh
Rs.8 Lakh - 15 Lakh
Rs.20.00 Lakh - 27.00 Lakh
Rs.9.2 Lakh - 11.73 Lakh
Rs.14.00 Lakh - 30.83 Lakh
More Related News
Considering a Mahindra SUV? Here Are the Top 10 Models Available in India
If you’ve been exploring SUVs in India, chances are the name Mahindra has come up more than once — and for good reason. As one of India’s most trusted automotive brands, Mahindra & Mahindra has built its reputation on rugged, reliable, and performance-driven SUVs that perfectly match Indian road conditions.
Read More
Top 10 Most Fuel-Efficient Cars in India You Should Consider
Fuel. Prices. Traffic. Every Indian driver knows this triple threat all too well. Fuel economy isn’t just a number on a brochure anymore. It’s what decides monthly budgets, road-trip plans and even which model ends up in our parking spot. That is why the hunt for the most fuel efficient cars in India is hotter than ever. Buyers today want the perfect balance: comfort, performance, and best mileage without sacrificing features. Whether someone prefers fuel efficient petrol cars, trusts diesel for long-distance power, or is curious about hybrids slowly taking over the streets, 2025 has a mix for everyone. With a rise in fuel prices, packed city roads and long commutes, best cars for mileage have become the top priority for most families and young professionals. So if maximum kilometres per litre is your goal, this list of the top 10 mileage cars in India will help you choose smartly. Whether you drive daily to work or escape on long weekend trips, these are the cars currently giving the best mileage in India.
Read More
GST 2.0 Ignites Diwali Hopes: Auto Companies Aim to Double Sales Figures
As India welcomes the festive season, the government’s rollout of GST 2.0 has arrived at just the right time — giving a much-needed boost to the automobile industry. With Diwali 2025 around the corner, carmakers are preparing for a massive jump in demand as the new GST regime brings tax clarity and price relief. From Maruti Suzuki and Hyundai to Tata Motors, Mahindra, and Kia, auto giants are gearing up with special festive editions, attractive finance options, and big savings. The combination of GST 2.0’s impact on the automobile sector and the flood of Diwali car offers 2025 could make this one of the strongest sales seasons in years.
Read More
Toyota Announces Navratri Offers with Benefits up to Rs. 1 Lakh
Buying a car during the festive season is considered highly auspicious in India. For many families, festivals like Navratri mark a new beginning, making it the perfect time to invest in big purchases. To add to this joy, Toyota Kirloskar Motor has announced exclusive Toyota Navratri offers with benefits of up to ₹1 Lakh on select models. From premium hatchbacks to advanced hybrid SUVs, Toyota is making car ownership more rewarding this festive season. Customers can enjoy Toyota festive discounts, exchange bonuses, attractive finance schemes, and even extended warranty packages. These offers not only make buying a car affordable but also ensure long-term value and peace of mind.
Read More
Best 7-Seater Cars for Indian Families: Space Safety and Affordability
Buying a family car in India has never been just about style or price. It’s about comfort, safety, and making life easier for everyone in the family. And if you’ve got a big household, you’ve probably thought about getting a 7-seater car. Honestly, it’s the most practical choice. That extra row of seats means no more squeezing in or fighting over space—whether it’s the daily school run, a long holiday road trip, or just navigating through city traffic. And here’s the best part—you don’t need to spend a fortune. In 2025, carmakers are offering plenty of budget-friendly family cars that are reliable, comfortable, and safe. Let’s check out some of the best 7-seater cars in India this year.
Read More
Nissan Armada Launches with NISMO Punch and PRO-4X Muscle in 2026
Full-size SUVs don’t always scream excitement. Most people see them as big, practical family haulers. But Nissan just flipped the script with the all-new 2026 Armada. This isn’t just a refresh — it’s a bold re-introduction, and it comes in two types that couldn’t be more different: the performance-packed Armada NISMO and the adventure-hungry Armada PRO-4X. One leans into horsepower and swagger, the other thrives in dirt and rocks. Together, they give the Armada something it’s never really had before: attitude.
Read MoreSubscribe Now
Want to Know more about Upcoming and New Cars… Ask Us!