Maruti ki Balle Balle: GST Cut on Small Cars to Power a Sales Surge!

While most of the automakers are looking at SUVs to drive sales, Maruti Suzuki is still banking on entry-level cars, including hatchbacks, sedans and sub-4 meter SUVs. The Indo-Japanese automaker believes that small cars sales will grow again in long term. Post new GST rates, it seems like Maruti Suzuki was right as small cars with CNG, hybrid and petrol engines are set to receive massive price cut. 

Small Cars to get Cheaper - How will it benefit Maruti Suzuki?

As per latest GST rates, automobiles are made affordable. Cars below 1500cc engine and 4 meters in length will attract 18% GST rates instead of 28%. 
 

Petrol & petrol hybrid, LPG and CNG cars with up to 1200cc engine and 4000mm length will have straight 18% GST rates. Similarly, diesel and diesel hybrid cars with engine capacity up to 1500cc engine and 4 meters length will have lowered 18% GST rates. 

Maruti Suzuki sells the most number of small cars in India, and no other brand has half its numbers. While Tata Motors sells Tiago, Tiger, Nexon, Punch and Altroz, Hyundai sells Grand i10 Nios, i20, Venue and Exter in the sub-4 meter category. On the flip side, Maruti Suzuki sells 12 cars in the sub-4 meter segment, and this number is going to further increase in future. 

Another positive is that Maruti Suzuki is also working on a new low-cost strong hybrid engine. This hybrid powertrain will power the brand’s most successful cars such as Fronx, Swift, Baleno and even Brezza. The lowered GST rates will further help Maruti Suzuki to capitalise on this, as its low-cost hybrid powertrain is reportedly to offer a mileage of over 35kmpl. 

Maruti Suzuki is also working on a new sub-4 meter MPV based on the SPACIA on sale in Japan. This small MPV will also receive the hybrid engine and it could be a huge success keeping increasing demand for family cars in India. Previous reports suggest that Maruti Suzuki is also working on an all-new small car with petrol, hybrid and CNG fuel options. 

Maruti Suzuki also betting big on CNG sales, as it is already the biggest player in this category. In fact, one in every three Maruti Sold in FY2025 was a CNG with sales reaching 6.20 lakhs. Maruti commands over 70 percent market share in the CNG-powered passenger vehicle market. 

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