Hyundai Joins Tata Motors in Slashing Prices Post-GST Cut

We begin with good news for car buyers. India’s Goods and Services Tax (GST) saw major cuts this month. The GST rate for small cars has been lowered from 28% to 18%. Larger cars lost an added cess, bringing their effective rate down to 40%. This makes a real difference.

Tata Motors moved fast. It slashed prices by as much as ₹1.55 lakh. Models like Nexon, Safari, and Harrier got bigger discounts.

Now, Hyundai has jumped in. From September 22, its popular models like Grand i10, i20, Venue, Creta, and Tucson will be cheaper. Tucson sees the largest price drop, with discounts reaching up to ₹2.4 lakh.

We are seeing something exciting. Two major automakers are passing tax savings directly to buyers. This could boost sales during the festive season. And it gives car lovers more choices at lower prices.

Background: GST and the Auto Industry

India’s GST council recently tweaked tax rates on passenger vehicles. Small cars (under 4m, modest engines) now carry 18% GST. Larger vehicles are now taxed at 40%, without any additional cess.

This is GST 2.0. Its goal? Make cars more affordable and lift demand across the board.

Tata Motors: The First Mover

We saw Tata respond fast. They promised to pass the tax benefit in full to customers starting September 22. Here’s what some key models now cost less by (max):

• Tiago: ₹75,000
• Tigor: ₹80,000
• Altroz: ₹1,10,000
• Nexon: ₹1,55,000
• Harrier: ₹1,40,000
• Safari: ₹1,45,000

Tata also extended these cuts to commercial vehicles, lowering prices by up to ₹4.65 lakh. This move was smart. It shows Tata cares about customers and wants to ride the festive shopping wave.

Hyundai Joins the Bandwagon

Hyundai now echoes the trend. Starting September 22, Hyundai’s entire car lineup has become more affordable. Here are the maximum reductions by model:

• Grand i10 Nios: ₹73,808
• Aura: ₹78,465
• Exter: ₹89,209
• i20: ₹98,053
• i20 N Line: ₹1,08,116
• Venue: ₹1,23,659
• Venue N Line: ₹1,19,390
• Verna: ₹60,640
• Creta: ₹72,145
• Creta N Line: ₹71,762
• Alcazar: ₹75,376
• Tucson: ₹2,40,303

We’re looking at big savings, especially on SUVs. Hyundai is giving shoppers a clear reason to consider its models now.

Competitive Pressure on Other Automakers

We’re not seeing actions just from Tata and Hyundai. Other manufacturers are reacting too.
Mahindra cut prices by up to ₹1.56 lakh.
Similarly, brands like Renault, Toyota, and BMW also slashed prices, ranging from ₹60,000 on small cars to ₹11 lakh on luxury models.

Maruti Suzuki is expected to follow soon. We might see a price match battle. Dealers could offer extra schemes and promos to win over buyers.

Consumer Impact

We are the biggest winners here. Car buying is becoming more affordable. First-time buyers and families can now think about SUVs they might have skipped.

We expect demand to pick up during the festive season as affordability improves. The timing is perfect to attract showroom visits and test drives.

Broader Industry Implications

Lower prices for Tata and Hyundai could ripple across India’s auto ecosystem.
Demand rise might benefit the supply chain, steel, tyres, electronics, and batteries.
This move might also make EVs relatively more appealing, helping India’s green mobility push.
Mass-market brands gain, while luxury players may feel pressure if buyers gravitate toward cheaper SUVs.

Challenges Ahead

But there are risks. Can companies sustain these price cuts if input costs, like chips or commodities, rise? There’s also global uncertainty, from oil/power prices to logistics. Hyundai and Tata must keep margins balanced while staying attractive.

Conclusion

We see a bold shift. Hyundai and Tata Motors have transferred the GST savings directly to customers. Now, cars in India cost less due to lower taxes, not just features. This move boosts choices, opens doors to new buyers, and may spark wider change across the industry.

As we head into the festive buying season, car ownership looks more real and exciting than ever. And Hyundai is right there, making this wave even stronger.

Disclaimer:

This content is for informational purposes only and is not financial advice. Always conduct your research.