After Tata, Mahindra, price drop for Maruti Suzuki cars next? Here's what auto manufacturer said

The GST reform announced by the GST Council this week — one of the biggest tax reforms since 2017 — has brought fresh optimism in the market ahead of the festive season. The government's move to reduce the tax slabs to 5 per cent and 18 per cent is expected to cushion the blow that the Indian economy would likely face due to steep tariffs imposed by US President Donald Trump.

A visitor uses her phone next to Maruti Suzuki's e Vitara SUV at the company's Gujarat plant in the village of Hansalpur Becharaji, India, August 26, 2025. REUTERS/Amit Dave(REUTERS)

Following the GST announcement, several automobile companies lined up to slash the prices of passenger vehicles to pass on the GST benefits to the consumers. Tata Motors, Mahindra and Renault were among the automobile majors to announce a reduction of prices.

Maruti Suzuki, the largest automobile seller in India, is expected to drop the prices of some cars, including Alto and Wagon R.

Also Read: Tata Motors to reduce prices on cars by up to ₹1.45 lakh after GST reforms: Check full list

Maruti Suzuki Chairman RC Bhargava has suggested that the price of Maruti's Alto could be reduced by ₹40,000-50,000, while the price of Wagon R may see a reduction between ₹60,000 and ₹67,000, Business Standard reported. He added that the company officials are working out on the details.

Bhargava further said that the GST reduction could lead to a 10 per cent increase in sales of small cars this financial year, in a boost to the automobile sector. The GST Council earlier this week decided to reduce the tax on passenger vehicles to 18 per cent from 28 per cent, effective from September 22.

"Small cars sales, which were de-growing, we project now, will grow by 10 per cent this year after the sharp GST cut. Even the tax on bigger cars, which were paying GST plus cess of up to 50 per cent, is now capped at 40 per cent. As a result, we expect the total passenger car market to grow by 6-8 per cent," he told Business Standard.

Also Read: After Tata, Mahindra passes on GST benefit, cuts SUV prices by ₹1.56 lakh | Full list

The Maruti Chairman said that the GST cut will also benefit larger vehicles and luxury cars with engine above 1,200 cc and longer than four metres.

"The GST reduction will help larger and high-end cars, too. That is because earlier they used to pay 28 per cent and a cess — which effectively increased the GST pay out to 43 per cent–50 per cent," he added.

Tata, Mahindra, Renault announce slashing prices

Tata Motors on Friday announced reducing the price of passenger vehicles by up to ₹1.45 lakh to pass on the benefit of the GST reduction to customers. While the biggest cut was seen in the price of Harrier and Safari by ₹ ₹1,40,000 and ₹1,45,000 respectively, the lowest cut was made on Tiago and Tigor by ₹74,000 and 80,000 respectively.

Also Read: Renault announces price reduction on cars by upto ₹96,395

Mahindra & Mahindra Ltd also announced price cuts on its cars of up to ₹1.6 lakh, starting September 6. While the biggest cut was made on XUV3XO, reducing the price up to ₹1.56 lakh, the lowest cut of ₹1.01 lakh was made on THAR 4WD (Diesel).

Renault India has also announced price cuts following GST reform, reducing the prices of its cars by up to ₹96,395. The price of the highest variant of Kwid will come down by ₹54,995, Triber by ₹80,195 and Kiger by up to ₹96,395.