New GST Rates: Premium cars were also affordable, BMW cars became cheaper up to Rs 9 lakh

New GST Rates: Premium cars were also affordable, BMW cars became cheaper up to Rs 9 lakh

New Delhi. India's auto market is ready for major changes after the tax reform of the GST Council, which reduced rates in different categories and introduced a new simple structure. Luxury cars are placed in a 'Special Slab' of 40 percent, which used to be up to 50 percent earlier. It also included cess.

BMW cars became cheaper by 9 lakhs
For buyers of premium brands like BMW, Mercedes-Benz and Audi, it means 8–10 percent savings. BMW has announced that its main X7 SUV will now be available at a price of Rs 9 lakh, which will directly benefit the customers. Earlier, 28 percent GST and 20-22 percent cess were imposed on luxury vehicles, causing the total tax of about 50 percent. Now, under the new structure, a similar 40 percent tax is applied, which has made the high end models more competition in India's growing premium car market.

Tata's cars will also be cheaper

Buyers of the general market will also feel the difference. Tata Motors has announced a cut in prices up to Rs 1.45 lakh in its passenger vehicle line-up from 22 September, 2025.

Tata Tiago: Rs 75,000 less (ex-showroom Rs 4,99,990)
Tata Tigor: Rs 80,000 less (ex-showroom Rs 5,99,990)
Tata Altrose: 1.10 lakhs less (ex-showroom Rs 6,89,000)
Tata punch: 85,000 rupees less (ex-showroom Rs 6,19,990)
Tata Nexon: Rs 1.55 lakhs less (ex-showroom Rs 7,99,990)
Tata Curve: Rs 65,000 less (ex-showroom Rs 9,99,990)
Tata Harrier: Rs 1.40 lakhs less (ex-showroom Rs 14,99,990)
Tata Safari: 1.45 lakhs less (ex-showroom Rs 15,49,990)

Mahindra's cars also become cheap
Due to the decrease in GST, popular models of M&M such as Thar, Scorpio, Bolero, XUV 700 and Scorpio-N will now be available with significant savings ranging from Rs 1.01 lakh to Rs 1.56 lakh on the basis of models and variants. The prices of Bolero and Bolero Neo have come down by Rs 1.27 lakh, while the price of XUV3 XO petrol has been reduced by Rs 1.40 lakh, and the price of XUV3 XO diesel has come down by Rs 1.56 lakh.

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