🚗 What Changed Under GST 2.0?
- Compact cars (under 4,000 mm, petrol <1,200cc or diesel <1,500cc):
GST reduced from 28% to 18%, leading to price drops of ₹50,000 to ₹1.29 lakh
Example: Maruti Alto K10, Swift, Wagon-R, Baleno
Source: OneIndia - Larger vehicles (above 4,000 mm or engine >1,500cc):
Now taxed at 40% flat, down from a combined 45–50% (GST + cess)
Example: Mahindra Thar, Toyota Fortuner, Tata Safari
Source: LiveMint - Two-wheelers up to 350cc:
GST dropped from 28% to 18%
Example: Hero Splendor, Honda Activa, Royal Enfield Classic
Source: Times Now - EVs:
GST remains unchanged at 5%, maintaining their price advantage
Source: Financial Express
💸 Brand-Wise Price Drops
- Maruti Suzuki: Up to ₹1.29 lakh off on Alto, Swift, Baleno
- Mahindra: ₹1.56 lakh off on Thar, Scorpio-N, XUV700
- Tata Motors: ₹1.55 lakh off on Nexon, Harrier, Safari
- Kia: Up to ₹4.49 lakh off on Carnival, Sonet, Syros
- Toyota: ₹3.49 lakh off on Fortuner, Hilux, Vellfire
- Luxury brands: Mercedes-Benz and Land Rover models see cuts up to ₹30 lakh
Source: CarDekho
🧠 What It Means for Buyers
The GST 2.0 reform is expected to:
- Boost festive season car sales
- Improve affordability for first-time buyers
- Increase competition across segments
- Widen the price gap between EVs and ICE vehicles
Prime Minister Modi called it a “GST savings festival” and urged manufacturers to pass on the benefits to consumers.
Source: Indian Express