Introduction
Starting September 22, 2025, India rolls out GST 2.0, reforming tax slabs and making many vehicles significantly cheaper. From popular SUVs to beloved two-wheelers, consumers are set to benefit from lower taxes. If you were planning to buy a car or bike soon, now’s the time to check out which models just got more affordable and by how much.
- The GST Council simplified tax slabs: now, most small cars and bikes under certain engine sizes are taxed at 18%, down from the earlier 28%.
- Luxury vehicles, large SUVs, high engine capacity bikes, and certain premium models now fall under a new 40% tax rate, which replaces some of the earlier, more complex cess regimes.
- Small petrol cars under 1,200 cc, small diesel under 1,500 cc, and cars shorter than 4 meters are among those that benefit most.
Vehicles That Got Cheaper: Cars & SUVs
Here are some key models where you’ll see notable savings under the new rate:
Mahindra
- Bolero & Bolero Neo – now taxed at 18%.
- XUV 3XO – petrol and diesel variants get reduced prices (diesel gets biggest cut).
- Thar 2WD (Diesel) – falls into the 18% bracket; big savings.
Other Mahindra models like Thar 4WD, Scorpio N, XUV 700 etc., move to the steeper 40% slab.
Maruti Suzuki
- Models such as Alto K10, Swift, Brezza, S-Presso, WagonR, Dzire, Eeco have seen price cuts ranging up to ₹1.29 lakh.
- Larger or premium Maruti cars (with bigger dimensions/engine) are less likely to benefit as much due to their new tax slab.
Renault
- Kiger got cheaper by nearly ₹96,395.
Two-Wheelers: Bikes & Scooters with Price Drops
- All motorcycles and scooters below 350 cc now attract 18% GST instead of 28%. That means models like Hunter 350, Classic 350, Bullet 350, Meteor 350, Goan Classic 350 get cheaper.
- For bikes above 350 cc, GST has increased to 40%, pushing prices up for premium bikes in the larger engine categories.
What to Watch Out For
- Trim and variant differences: The amount you save depends heavily on engine displacement, car length, and whether it’s petrol/diesel vs hybrid.
- Big SUVs & premium two-wheelers may see a price increase or a smaller benefit, because they fall under the new 40% slab.
- Electric vehicles (EVs) are usually taxed at a lower rate under GST 2.0; some may already be in favorable slabs.
Conclusion
For buyers, GST 2.0 isn’t just a policy shift—it’s a rare opportunity. If you’re looking to purchase a small car or a sub-350 cc bike, you’re likely to get one at a significantly reduced price. The savings aren’t minor—they can run into lakhs in some cases.
But timing is key. Vehicles that cross into luxury or high-performance categories now face steeper taxes. So, if your model of interest hits the sweet spot—small size or lower engine capacity—it could be your best chance for a deal.
Curious about a specific model’s price drop? I can pull up exact new vs old prices for your favorite car or bike to see what you stand to save.
