Mahindra XUV 3XO, Tata Nexon Set for Massive Price Cuts; Brezza & Jimny to See Little Relief!

Its official - Tata announces price reduction across line-up, and Nexon gets the biggest price cut. Tata Nexon gets cheaper by up to Rs 1.55 lakh, while Safari and Harrier prices reduced by up to Rs 1.45 lakh and Rs 1.40 lakh, respectively. Read full story here
 

The Government of India has introduced major changes to GST rates, which will make cars significantly cheaper. Most of the components used in the manufacturing of cars will now attract a flat 18% tax. Earlier, the GST rates for the automobile products were at 28% along with Cess. The Government has reduced the GST rates to 18% for cars measuring under 4 meters and engine capacity of up to 1200cc in petrol and 1500cc in diesel. 

A flat 40% will be charged for other cars, which is also a reduction of up to 10%. The government of India has completely removed the additional Cess on any of the auto products, including luxury cars and cars bigger than 4 meters in length. 

It is expected that most of the mass market cars will get cheaper from September 22, 2025, which is also the beginning of the auspicious Navratri season. Most of the sub-4 meter SUVs, hatchbacks and sedans are likely to receive a price reduction of up to 13 percent; however, Maruti Brezza and Jimny won’t receive significant cut and their prices could be reduced by up to 5%. Also See - Maruti ki Balle Balle: GST Cut on Small Cars to Power a Sales Surge!

Maruti Brezza and Jimny Expected Price After GST Relief

Both Maruti sub-4 meter SUVs are powered by 1.5L petrol engine, which will be charged straight 40% under new GST reforms. The outgoing models were charged up to 45%, which includes 28% GST + 17% Cess. So the relief for customers won’t be more than 5%. The existing Maruti Brezza is priced between Rs 8.39 lakh and Rs 13.50 lakh, and with reduction in tax, we expect the new model to receive a price cut of around 30-50k. 

Nexon, XUV 3XO - Big Price Cut Expected

Most of the sub-4 meter SUVs, including Nexon, XUV 3XO, Fronx, Venue, Sonet and Syros are likely to receive massive price cut. All these cars come with a petrol engine under 1200cc and a diesel engine with capacity less than 1500cc. 

The Tata Nexon is priced between Rs 8 lakh and Rs 15.60 lakh. In the current scenario, the SUV is charged 29% and 31% (GST + Cess) for petrol and diesel, respectively. With straight 18% GST rates, the Nexon prices could reduce by up to 1.5 lakh. Similarly, the XUV 3XO could receive a price cut of up to 1.5 lakh. However, it is early to comment how much brands will pass on these benefits to consumers. 

Also See - Maruti Victoris Price Announcement Imminent, Here's How Much It Could Cost!