Business

Maruti Suzuki slashes car prices by up to ₹1.29 lakh after GST rate cuts

By Martin Shwenk Leade

Copyright indiatimes

Maruti Suzuki slashes car prices by up to ₹1.29 lakh after GST rate cuts

ReutersFILE: Maruti Suzuki Celerio cars are parked beside an in-plant railway siding at Maruti Suzuki’s plant in Manesar, Haryana, India

Maruti Suzuki on Thursday announced that the company will pass on the full benefit of the recent reduction in GST rates on automobiles to customers by lowering vehicle prices across its portfolio. The revised prices will come into effect from September 22, 2025, in line with the updated GST regulations and the move also coincides with the forthcoming festive season.Entry-level cars such as the S-Presso and Alto K10 will see the steepest cuts, with reductions of up to ₹1.29 lakh and ₹1.07 lakh, respectively. SUVs like Fronx and Brezza have also seen reduction by up to ₹1.12 lakh.Shares of Maruti Suzuki were trading at ₹15,740.00 apiece on the BSE, down 0.38% on Thursday, as of 2.20 PM.The government has revised GST rates for passenger vehicles effective September 22, 2025. The tax has been reduced from 28% to 18% for small cars, including petrol, LPG, or CNG models with engine capacity up to 1,200cc and length under 4,000 mm, and diesel cars with engine capacity up to 1,500cc and length under 4,000 mm. Live EventsOn the other hand, larger cars and SUVs now attract a 40% GST, covering petrol or hybrid vehicles with engine capacity above 1,200cc or length over 4,000 mm, and diesel or hybrid cars above 1,500cc. Model-wise reduction in prices ModelReduction in Ex-Showroom Price (₹)Starting Price (₹)S-PressoUp to 1,29,6003,49,900Alto K10Up to 1,07,6003,69,900CelerioUp to 94,1004,69,900Wagon-RUp to 79,6004,98,900IgnisUp to 71,3005,35,100SwiftUp to 84,6005,78,900BalenoUp to 86,1005,98,900Tour SUp to 67,2006,23,800DzireUp to 87,7006,25,600FronxUp to 1,12,6006,84,900BrezzaUp to 1,12,7008,25,900Grand VitaraUp to 1,07,00010,76,500JimnyUp to 51,90012,31,500ErtigaUp to 46,4008,80,000XL6Up to 52,00011,52,300InvictoUp to 61,70024,97,400EecoUp to 68,0005,18,100Super CarryUp to 52,1005,06,100Maruti Suzuki’s price reductions come at a crucial time for the Indian auto industry, which has seen four consecutive months of declining passenger vehicle sales as automakers regulated dispatches to dealers ahead of the announcement of the revised goods and services tax (GST) rates. A total of 321,840 vehicles were dispatched from factories to dealerships last month, an 8.8% decline from 352,921 units a year earlier, showed data issued by industry body Society of Indian Automobile Manufacturers (SIAM)Also Read: Maruti slashes SUV prices- Full list of prices revealedBy passing on the full GST benefit, Maruti Suzuki is effectively lowering the entry price for buyers, which could help revive first-time car purchases and fleet sales. The move appears to be as one of the most anticipated ones by the industry as it may give a boost to dealerships, inventory turnover, and overall industry morale.Which models stand to benefit the mostThe entry-level and compact segment cars, including S-Presso, Alto K10, Celerio, Wagon-R, and Ignis, are likely to see the largest boost in demand. These models have the highest reductions, ranging from ₹71,300 to ₹1.29 lakh, making them more affordable for middle-class buyers and urban commuters.S-Presso tops the list with a ₹1.29 lakh price cut, potentially driving strong sales among first-time car buyers. Alto K10 and Celerio, long-standing volume drivers for Maruti, also see reductions above ₹90,000.Compact SUVs like Brezza and Fronx benefit from cuts over ₹1 lakh, helping Maruti compete with rivals in the growing SUV segment.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onmaruti suzukimarutiMaruti SuzukiGST rates on automobilesreduction in GST ratesmaruti suzuki new price listmaruti suzuki share pricemaruti suzuki car pricesgst cut on maruti suzukivitara(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless