Following the government’s decision to revise Goods and Services Tax (GST) slabs last week, several auto companies have rolled out price cuts, fully transferring the benefit to customers.
On Tuesday, major names including Bajaj Auto, Jaguar Land Rover, Volvo Cars, Jeep India, Honda Cars, and Yamaha Motor announced reductions across their portfolios.
GST Changes for Automobiles
- Small cars (up to 1200 cc engine and under 4000 mm length): GST reduced from 28% to 18%.
- Luxury cars/SUVs (above 1200 cc petrol, 1500 cc diesel, or over 4000 mm length): Now taxed at a flat 40%, lower than the earlier effective rate of 50% (28% GST + 22% cess).
- Two-wheelers: Models below 350 cc will attract 18% GST (down from 28%), while those above 350 cc will continue under the higher slab.
Bajaj Auto
The company confirmed that from September 22, customers will enjoy price reductions of up to ₹20,000 on two-wheelers and KTM motorcycles, and up to ₹24,000 on three-wheelers.
Rakesh Sharma, Executive Director, said two- and three-wheelers are integral to livelihoods, adding: “We are pleased to support the initiative, making mobility more affordable as the festive season begins.”
Yamaha Motor
India Yamaha Motor announced a price cut of up to ₹17,581 across its models, effective September 22, 2025.
- R15: Reduced to ₹1,94,439 (from ₹2,12,020).
- RayZR: Now priced at ₹86,001, down by ₹7,759.
Chairman Itaru Otani welcomed the government’s move, saying it would “boost demand during the festive season and create positive momentum for the industry.”
Jaguar Land Rover (JLR)
Luxury carmaker JLR cut prices across the Range Rover, Defender, and Discovery line-up. Customers will see benefits ranging from ₹4.5 lakh to ₹30.4 lakh, effective September 9.
Volvo Car India
Volvo announced a reduction of up to ₹6.9 lakh on its ICE vehicle portfolio, effective September 22.
Honda Cars
Honda Cars India will lower prices across multiple models, effective September 22:
- Amaze: Reduced by up to ₹95,500.
- City: Reduced by ₹57,500.
- Elevate: Reduced by ₹58,400.
Jeep India
Jeep’s entire portfolio — including Compass, Meridian, Wrangler, and Grand Cherokee — will see price cuts between ₹1.26 lakh and ₹4.8 lakh, depending on the model and variant. The revised pricing will apply nationwide from September 22.
TVS Motor Company
TVS confirmed that it would extend the full benefit of GST reductions across its internal combustion engine models. Specific price details, however, were not disclosed.
Other Automakers
Over the weekend, companies including Mahindra & Mahindra, Renault India, Toyota Kirloskar Motor, Tata Motors, Mercedes-Benz, and Hyundai Motor India also announced similar price revisions in response to the GST rate cuts.
✅ In short, the GST rationalisation has triggered a wave of price cuts across the auto industry, with both mass-market and luxury segments passing on significant savings to customers — a move expected to lift demand just ahead of the festive season.
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