By Dwaipayan Roy | Sep 22, 2025 | 05:21 pm
**What’s the story?**
The Indian government has introduced a major overhaul in the Goods and Services Tax (GST) structure, dubbed **GST 2.0**. The new regime, which came into effect today, is expected to make cars more affordable by simplifying the tax structure.
This move is likely to give a significant boost to sales in the Indian auto industry, especially for compact SUVs.
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### Market Impact
#### Affected Models
The new tax regime is expected to benefit several compact and sub-compact SUVs in the country. Popular models such as:
– Tata Punch
– Tata Nexon
– Maruti Suzuki Brezza
– Hyundai Venue
– Kia Sonet
– Mahindra XUV 3OO
– Renault Kiger
will see price reductions under GST 2.0. Combined with festive offers, these price cuts are likely to make these models even more attractive to consumers.
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### Car 1: Tata Punch
The Tata Punch has quickly become one of India’s best-selling cars since its launch. Its compact design, sturdy build, and upmarket features make it an attractive option for many buyers.
Under the new GST regime, the Tata Punch is now available at a starting price of ₹5.49 lakh (ex-showroom), following a price cut of ₹71,000.
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### Car 2: Tata Nexon
The Tata Nexon continues to be a popular compact SUV with a premium feel, strong performance, and excellent value for money.
It has received a price reduction of up to ₹68,000 under the new tax structure, bringing its starting price down to ₹7.32 lakh (ex-showroom).
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### Car 3: Hyundai Venue
Hyundai’s Venue is a strong contender in the compact SUV segment and has also benefited from the GST overhaul.
The vehicle now comes with a price cut of up to ₹68,000, reducing its starting price to ₹7.26 lakh (ex-showroom), making it an even more attractive option for budget-conscious buyers.
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### Car 4: Maruti Suzuki Brezza
The Maruti Suzuki Brezza has long been a favorite in the Indian market, making compact SUVs accessible to a broad range of consumers.
Under GST 2.0, the Brezza has received a price cut of ₹43,000, bringing the starting price down to ₹8.26 lakh (ex-showroom).
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### Car 5: Mahindra XUV3OO
The Mahindra XUV3OO stands out with its sharp design and premium features. This SUV enjoys an impressive five-star BNCAP safety rating.
With the new GST regulations, it is now offered at a starting price of ₹7.28 lakh (ex-showroom), following a price cut of up to ₹71,000.
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### Car 6: Kia Sonet
The Kia Sonet, the most affordable model from Kia in India, has also been impacted by the new tax regime.
It has received a price cut of ₹70,000, lowering its starting price to ₹7.30 lakh (ex-showroom).
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**Conclusion**
The introduction of GST 2.0 marks a significant step towards simplifying the tax system and making cars more affordable in India. With substantial price cuts on popular compact SUVs, the Indian auto market is poised for robust growth, especially as festive season offers further incentivize consumers.
https://www.newsbytesapp.com/news/auto/gst-2-0-has-made-these-cars-cheaper-in-india/story
