The country’s largest carmaker Maruti Suzuki Thursday said it will pass on the full benefit of the recent reduction in GST rates on automobiles to customers by lowering vehicle prices across its portfolio.
The price reductions - which range from Rs 46,000 on MPV Ertiga to Rs 129,000 on small hatch S-Presso – include both the benefit from lower GST rates as well as additional price incentive being extended by the company to boost car sales in the local market.
Partho Banerjee, senior executive officer (marketing and sales) at Maruti Suzuki said the company has reduced prices on small cars over and above the net benefit of 8.5% due to lower GST to help two-wheeler users upgrade to cars. On the S-Presso, the total benefit being extended by the company would range from 12.6-24%, on Alto K10 from 10.6-20%, Celerio from 8.6-17% and WagonR from 8.7-14%.
“We strongly believe that sales of small cars had declined due to affordability issues. Now there are several tailwinds due to lower GST, income tax slab revisions announced in the budget earlier this year and lower interest rates. Our engineering and production team has been working hard. And we are also extending benefits, in addition to the GST cut, to accelerate the transition to cars in the entry segment”, he informed.
Banerjee added as the car penetration in India is “so low, at 34 per 1,000 people, it makes it all the more compelling reason that, being a market leader, we are taking this initiative to put India on wheels.” With these measures, Maruti Suzuki expects passenger vehicle sales to bounce back to the earlier CAGR of 6-7% starting next financial year.
The price reductions are coming at a time when sales of passenger vehicles fell for the fourth straight month – by 8.8% this August - amid sluggish demand and auto majors calibrating dispatches ahead of the tax reset in the local market.
Banerjee said that reduced vehicle prices at the entry-level would help stabilise the segment stabilise, which has seen a sharp decline in volumes the last few years. "The company will also pass on the GST rate cut benefit on car parts used in service and maintenance to reduce the overall total cost of ownership," Banerjee noted.
Maruti Suzuki will compensate its channel partners for the "strategic pricing" initiative, Banerjee said.
The revised prices will come into effect from September 22, 2025, in line with the updated GST regulations, which coincides with the second leg of the festive season. At Maruti Suzuki, entry-level cars such as the S-Presso and Alto K10 will see the steepest cuts, with reductions of up to Rs 1.29 lakh and Rs 1.07 lakh, respectively. SUVs like Fronx and Brezza have also seen reduction by up to Rs 1.12 lakh.
The government has revised GST rates for passenger vehicles effective September 22, 2025. The tax has been reduced to 18% for small cars less than 4 metre in length from 29-31% (GST and cess). Larger cars and SUVs will attract a special GST rate of 40%, compared to the current rate of 43-50%.
Shares of Maruti Suzuki closed at Rs 15,802 apiece, up by 0.01% on BSE.
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The price reductions - which range from Rs 46,000 on MPV Ertiga to Rs 129,000 on small hatch S-Presso – include both the benefit from lower GST rates as well as additional price incentive being extended by the company to boost car sales in the local market.
Partho Banerjee, senior executive officer (marketing and sales) at Maruti Suzuki said the company has reduced prices on small cars over and above the net benefit of 8.5% due to lower GST to help two-wheeler users upgrade to cars. On the S-Presso, the total benefit being extended by the company would range from 12.6-24%, on Alto K10 from 10.6-20%, Celerio from 8.6-17% and WagonR from 8.7-14%.
“We strongly believe that sales of small cars had declined due to affordability issues. Now there are several tailwinds due to lower GST, income tax slab revisions announced in the budget earlier this year and lower interest rates. Our engineering and production team has been working hard. And we are also extending benefits, in addition to the GST cut, to accelerate the transition to cars in the entry segment”, he informed.
Banerjee added as the car penetration in India is “so low, at 34 per 1,000 people, it makes it all the more compelling reason that, being a market leader, we are taking this initiative to put India on wheels.” With these measures, Maruti Suzuki expects passenger vehicle sales to bounce back to the earlier CAGR of 6-7% starting next financial year.
The price reductions are coming at a time when sales of passenger vehicles fell for the fourth straight month – by 8.8% this August - amid sluggish demand and auto majors calibrating dispatches ahead of the tax reset in the local market.
Banerjee said that reduced vehicle prices at the entry-level would help stabilise the segment stabilise, which has seen a sharp decline in volumes the last few years. "The company will also pass on the GST rate cut benefit on car parts used in service and maintenance to reduce the overall total cost of ownership," Banerjee noted.
Maruti Suzuki will compensate its channel partners for the "strategic pricing" initiative, Banerjee said.
The revised prices will come into effect from September 22, 2025, in line with the updated GST regulations, which coincides with the second leg of the festive season. At Maruti Suzuki, entry-level cars such as the S-Presso and Alto K10 will see the steepest cuts, with reductions of up to Rs 1.29 lakh and Rs 1.07 lakh, respectively. SUVs like Fronx and Brezza have also seen reduction by up to Rs 1.12 lakh.
The government has revised GST rates for passenger vehicles effective September 22, 2025. The tax has been reduced to 18% for small cars less than 4 metre in length from 29-31% (GST and cess). Larger cars and SUVs will attract a special GST rate of 40%, compared to the current rate of 43-50%.
Shares of Maruti Suzuki closed at Rs 15,802 apiece, up by 0.01% on BSE.
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