Car manufacturers – Kia India and MG Motor have also joined the trend of slashing the prices of their vehicles as GST reforms are set to be implemented on September 22, 2025.
Prior to these automakers, Mahindra & Mahindra, Tata Motors, and some luxury car makers such as BMW have also reduced prices of their car models ahead of India’s festive season, with occasions like Navratri and Diwali lined up. These discounts are expected to revitalise car sales through December and the rest of the fiscal year.
This comes after the GST Council approved rate cuts for vehicles to 18 per cent on the date, while some models have been placed in the 40 per cent tax slab.
Prices of Kia cars after the GST reforms
Kia India released an official statement today, announcing that it will pass on the full benefit of the recent Goods and Services Tax (GST) reduction to customers across its entire Internal Combustion Engine (ICE) portfolio, which refers to traditional gasoline-or diesel-powered vehicles.
Here’s how much discount will apply to each Kia model, effective from September 22:
Commenting on the announcement, Gwanggu Lee, Managing Director and CEO of Kia India, said, “We welcome the Government of India’s visionary citizen-centric reforms to reduce the GST on passenger vehicles. This transformative measure represents a progressive and timely decision towards making vehicle purchase more affordable for consumers and bringing a boost to the automotive sector’s growth. In line with this vision, we are proud to pass on the full benefit of the GST rate reductions to our customers, ensuring more affordability and greater accessibility.”
He further added, “This significant reform simplifies the taxation framework and reinforces the government’s commitment to sustainable economic growth and innovative mobility solutions. We are confident this move will energise consumer sentiment and drive demand during the upcoming festive season.”
MG Motor cars to become cheaper
JSW MG Motor India also announced on Monday that it has reduced prices across its entire ICE SUV portfolio, including Astor, Hector, and Gloster.
The benefits will be in effect immediately, the company said in a release. The carmaker is also offering 100% on-road funding and 03-Months EMI holiday options, which offer added financial flexibility and peace of mind.
Here’s how much discount will apply to each MG Motor model post GST reforms:
“The government’s decision to rationalise GST is a good move that directly addresses the affordability challenge for car buyers and builds positive consumer sentiment. By extending the full benefit of this reform across our SUV portfolio, we want to ensure customers experience the immediate value of this change. At a time when demand is set to strengthen, especially around the festive season, our focus is on making our SUVs – Astor, Hector, and Gloster – more accessible and attractive. More than just passing on the benefits, this move reinforces trust, enables easier ownership, and encourages more customers to embrace MG,” said Vinay Raina, Chief Commercial Officer, JSW MG Motor India.
What are the new GST rates for cars?
According to the decision of the 56th GST Council, which takes effect from September 22, the GST on small cars will be levied at 18 per cent (down from 28 per cent earlier), while SUVs will be taxed under the 40 per cent slab without any cess. However, electric cars will continue to be taxed under the 5 per cent slab.
After the announcement, Tata Motors announced on September 5 that it would cut the prices of its passenger vehicles by ₹75,000 to ₹1.45 lakh, whereas M&M would cut passenger vehicle prices up to ₹1.56 lakh.
Premium, luxury automaker BMW also announced that it will reduce prices for its models by as much as ₹9 lakh.