Infographic announcing Maruti cars GST rate cut 2025, highlighting price drops up to ₹67,000 for Alto, Wagon R, and Swift models on a red background.
Introduction
The Indian government revised the Goods and Services Tax (GST) for the automobile sector. With the new GST rate on Maruti cars, buyers can now expect major savings, especially in small and mid-size vehicles. This update improves affordability and pushes demand for popular models such as the Alto K10, Wagon R, Swift, and Baleno.
New GST Rate on Cars
Starting 22 September 2025, the revised GST rules will apply:
- Small cars (under 4 meters, petrol/CNG up to 1,200 cc or diesel up to 1,500 cc):
The GST rate drops from 28% + cess to a flat 18% with no cess. - Mid-size cars and SUVs (engine above 1,500 cc, length over 4 meters):
The government fixed the tax at 40% GST, replacing earlier effective rates of nearly 50%. - Electric vehicles (EVs): GST remains unchanged at 5%.
This tax cut lowers car prices by about 7–10%, which benefits entry-level Maruti Suzuki buyers the most.
Impact on Maruti Cars
The new GST rate brings direct benefits to Maruti’s hatchbacks and compact SUVs.
Price Drop for Popular Models
- Maruti Alto K10: Buyers save ₹40,000 – ₹50,000.
- Maruti Wagon R: Prices fall by as much as ₹67,000.
- Maruti Swift & Baleno: Prices reduce by 7–8%.
- Maruti Brezza (selected trims): Costs go down because the cess no longer applies.
Larger Vehicles
Bigger models like the Grand Vitara also become more affordable. Even though the tax slab is 40%, the removal of cess lowers the final price.
Why This Matters for Buyers
- More affordability: Lower taxes make Maruti’s budget-friendly cars easier to buy.
- Sales growth: Experts predict small car sales will rise by 10%, while overall passenger car sales may increase by 6–8%.
- First-time buyers: Price cuts will bring more buyers into the entry-level market.
- Festive advantage: Buyers planning festive purchases will benefit from these savings.
Old vs New GST Comparison
| Segment | Old Rate (incl. cess) | New GST Rate | Price Impact |
|---|---|---|---|
| Small Cars (e.g., Alto, Wagon R) | 28% + cess | 18% | Cheaper by ₹40k–67k |
| Mid-size/SUVs (e.g., Brezza, Creta) | ~50% | 40% | Cheaper by up to ₹1 lakh |
| Electric Vehicles | 5% | 5% | No change |
Conclusion
The Maruti cars GST rate cut makes ownership more affordable than ever. Popular models such as the Alto K10 and Wagon R now cost significantly less, while larger SUVs like the Grand Vitara also offer better value. This change will drive sales growth and give Indian car buyers strong reasons to book their new Maruti models soon.
About the Author
