How GST 2.0 Cuts Are Shaking Up Car Prices & Which Cars Got Cheaper

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Home » How GST 2.0 Cuts Are Shaking Up Car Prices & Which Cars Got Cheaper

India’s auto market is buzzing after the new GST 2.0 cuts came into effect. Buyers across the country are now seeing noticeable changes in car prices, making some models more affordable than before. The move is designed to give the automobile sector a push, and car lovers are already checking which vehicles now fit better into their budgets.

In this article, I’ll break down how the price cuts are working, look at five popular cars that have become cheaper, compare their new pricing with the old, and wrap it up with a verdict on whether now is the right time to buy.

Maruti Suzuki Swift

The Maruti Suzuki Swift has always been a favorite among young buyers and families alike. With the GST 2.0 cut, the Swift now comes with a price drop of nearly ₹25,000 on average. The base variant can be picked up for around ₹6.2 lakh (ex-showroom), down from its earlier ₹6.45 lakh tag.

Apart from the reduced price, the Swift continues to deliver its trusted mileage of about 22 km/l for petrol, making it an excellent value choice for city driving and daily commutes.

Hyundai Creta

The Hyundai Creta, India’s most loved mid-size SUV, has also benefitted from the tax revision. Depending on the variant, buyers are saving around ₹40,000 to ₹50,000. The Creta now starts at roughly ₹10.6 lakh (ex-showroom) compared to the earlier ₹11 lakh range.

Also Read: The Hidden Truth About Mahindra XUV 3XO Price What GST Really Does

With a mileage of around 17 km/l for petrol and 21 km/l for diesel, it continues to balance comfort and economy. The reduced price makes it even more attractive for families looking for an SUV without stretching their budget too far.

Tata Nexon EV

One of the big winners of GST 2.0 is the Tata Nexon EV. With the government’s focus on cleaner mobility, tax cuts have brought down its prices by nearly ₹60,000. The Nexon EV now starts at about ₹13.9 lakh, compared to the earlier ₹14.5 lakh tag.

This electric SUV offers a real-world range of 280–300 km on a full charge, making it a practical choice for urban drivers. The drop in price has made it one of the most affordable electric cars in the country today.

Toyota Innova Hycross

For families and businesses, the Toyota Innova Hycross has always been a reliable pick. Thanks to the revised tax rates, its price has dipped by around ₹70,000 across variants. The starting price is now close to ₹18.9 lakh, compared to the previous ₹19.6 lakh mark.

Offering mileage of 16–21 km/l depending on petrol or hybrid versions, the Hycross is known for comfort and practicality. The new price tag makes it an even stronger contender for large families and travel enthusiasts.

Also Read: Top 5 Affordable Cars in India

Kia Sonet

The Kia Sonet, a stylish compact SUV, has also seen a cut of about ₹30,000 on select models. The base version now begins at around ₹7.2 lakh, compared to the older ₹7.5 lakh price.

With mileage ranging from 18 km/l for petrol to 24 km/l for diesel, it is one of the most efficient compact SUVs in the market. The revised pricing puts it back into the spotlight for budget-conscious buyers.

GST 2.0 Car Price Comparison in India

Here’s a simple comparison of old vs new prices of popular cars after the GST 2.0 cuts, along with their mileage details and the difference in price. This makes it even clearer how much buyers are saving.

Car ModelOld Price (Approx)New Price (Approx)Price DifferenceMileage
Maruti Suzuki Swift₹6.45 Lakh₹6.20 Lakh₹25,00022 km/l (Petrol)
Hyundai Creta₹11.00 Lakh₹10.60 Lakh₹40,00017 km/l (Petrol), 21 km/l (Diesel)
Tata Nexon EV₹14.50 Lakh₹13.90 Lakh₹60,000280–300 km range
Toyota Innova Hycross₹19.60 Lakh₹18.90 Lakh₹70,00016–21 km/l (Hybrid/Petrol)
Kia Sonet₹7.50 Lakh₹7.20 Lakh₹30,00018–24 km/l (Petrol/Diesel)

The biggest takeaway is that electric and hybrid cars are finally gaining a financial edge, encouraging eco-friendly adoption.

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Is It the Right Time to Buy?

With the GST 2.0 cuts, there has never been a better time to step into the car market. Whether you are a student eyeing your first hatchback, a family looking for a reliable SUV, or an eco-conscious buyer wanting an EV, the price drop makes ownership easier.

If you were delaying your purchase because of high costs, this shift in pricing could be your green signal. The market is moving fast, and with demand rising again, booking early might save you more than just money it could save you a long waiting period too.

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