Tata Motors has announced that it will pass on the full benefit of the recent Goods and Services Tax (GST) reduction to customers across its passenger vehicle line-up.
The revised prices will be effective from September 22, 2025, in line with the implementation of the new GST slabs announced by the Council earlier this month.
At its 56th meeting, the GST Council slashed tax rates on small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances from 28% to 18%. The move, hailed as a major boost for affordable mobility, is expected to lower prices of entry-level cars by nearly 10%. In addition, a uniform 18% GST rate has been introduced on all auto parts, simplifying the taxation structure.
Small cars are defined as those under 4 metres in length with engine capacities not exceeding 1,200cc for petrol and 1,500cc for diesel. These will now attract 18% GST with no additional cess, compared to the earlier 28% GST plus 1% cess.
All cars outside this bracket-above 4 metres in length and with engine capacities greater than 1,200cc for petrol and 1,500cc for diesel-will now attract 40% GST with no cess, compared to the earlier 28% GST plus 22% cess.
For two-wheelers, models with engine capacities below 350cc will be taxed at 18% GST, while those above 350cc will attract 40% GST, making it the only category in the vehicle segment to become more expensive.
The agriculture sector has also gained, with GST on tractors, harvesters, threshers, fodder balers, and similar equipment cut from 12% to 5%.
In line with these reforms, Tata Motors has confirmed the following price reductions across its popular models:
- Tiago: up to Rs 75,000
- Tigor: up to Rs 80,000
- Altroz: Rs 1.10 lakh
- Punch: Rs 85,000
- Nexon: Rs 1.55 lakh
- Curvv: Rs 65,000
- Harrier: Rs 1.40 lakh
- Safari: Rs 1.45 lakh
Commenting on the announcement, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd., said, “The reduction in GST on passenger vehicles is a progressive and timely decision that will make personal mobility more accessible for millions across India. In line with the Hon’ble Prime Minister’s vision, the Hon’ble Finance Minister’s intent and our Customer First philosophy, Tata Motors will fully honor the spirit of this reform by passing on the entire benefit to our customers.”
With the festive season approaching, the automaker anticipates strong demand and has urged customers to book early to secure deliveries.
By passing on the entire GST benefit, Tata Motors becomes one of the first automakers to announce price cuts across its range, making its portfolio of cars and SUVs more attractive to buyers ahead of the high-demand festive period.