India’s GST 2.0 rejig has translated into real, visible price cuts across showrooms. From mass-market favourites to German luxury badges, companies are now publishing revised ex-showroom prices, with most changes kicking in from September 22 and a few brands passing on the benefit even earlier.
At the core of the change: the government has simplified slabs and created a uniform 40% rate for luxury ICE vehicles, replacing the old compensation cess, an arithmetic that roughly trims luxury car stickers by 8-10% depending on model and configuration.
Car Prices After GST 2.0
Audi
Audi has published one of the clearest model-wise cuts. The Q8 gets the steepest reduction, down ₹7.8 lakh; the Q3 is lower by ₹3.07 lakh; the A6 drops by ₹3.64 lakh. Audi says benefits vary from ₹2.6 lakh to over ₹7.8 lakh across its line-up, with updated prices effective September 22.
For reference, the Q3 now starts at ₹43.07 lakh (down from ₹46.14 lakh) and the Q8 at ₹1.10 crore (down from ₹1.18 crore).
Mercedes-Benz & BMW (illustrative cuts)
As part of the same luxury-tax reset, Mercedes-Benz GLA pricing is indicated around ₹45.45 lakh (vs ₹50.5 lakh earlier), while BMW X7 is seen near ₹1.2 crore (vs ₹1.3 crore). These are representative reductions emerging from the industry’s early recalibration to the new regime.
Hyundai
Hyundai has confirmed reductions of up to ₹2.4 lakh across select models, with the Venue alone seeing up to ₹1.24 lakh off. These revised prices apply from September 22.
Mahindra
Mahindra went early. It has proactively cut prices by up to ₹1.56 lakh across its ICE portfolio, effective September 6, passing on GST benefits ahead of the formal go-live. The company says dealer and digital listings have already been updated.
Tata (Nexon – variant wise, tentative)
Early old-vs-new lists for the Nexon indicate ~8.5% cuts on entry petrol-manual trims (e.g., Smart: ₹7,99,990 → ₹7,31,800, a drop of ₹68,190 / -8.52%), and ~9.9% reductions across several diesel variants (e.g., 1.5L Diesel Smart Plus: ₹9,99,990 → ₹9,01,000, -₹98,990 / -9.90%). Tata has signalled these are tentative prices and may be marginally tuned as the new GST takes effect on September 22.
Why the luxury end moved the most?
The big swing is at the premium end, where the compensation cess (20–22%) has been retired and replaced by that flat 40% levy for luxury ICE cars. That simplifies invoicing and, crucially, brings luxury ICE tax incidence closer to mid-size mass-market cars (over 4m), unlocking meaningful savings at the top end. Expect this to goose festive-season bookings.
Two notes of caution
- Effective dates differ by brand. Most new stickers go live on September 22, but some manufacturers Mahindra notably, have applied cuts already. Always cross-check a specific variant’s effective date.
- Dealer inventory math. While buyers gain, dealerships holding stock purchased under the old cess regime could face a one-time hit (industry chatter pegs this exposure in the ₹2,500 crore ballpark). This doesn’t affect your invoice, but it explains why discounting and allocations may vary in the short run.
To Sum Up
- Luxury: Early read points to ~8-10% effective cuts, with Audi detailing ₹2.6-₹7.8 lakh reductions model-wise and similar recalibration visible at Mercedes-Benz and BMW.
- Mass-market: Concrete lists show Hyundai down up to ₹2.4 lakh, Mahindra up to ₹1.56 lakh, and Tata Nexon in the ~8.5–9.9% drop band depending on variant (tentative).
Also Read: UPI Triggers GST Panic: Karnataka Launches ‘Know GST’ Drive
