Maruti Suzuki Slashes Car Prices After GST Rate Cut – Full Updated Price List
Maruti Suzuki India Ltd., the country's largest automaker, has announced significant price reduction throughout its range in order to pass on the advantages of the recent Goods and Services Tax (GST) rationalisation to customers. The move comes only weeks after the government's historic decision to reorganize GST slabs, lowering rates on small automobiles to 18% but leaving luxury vehicles in the higher 40% category. For car consumers, this represents huge savings — from entry-level hatchbacks like the Alto K10 to premium SUVs like the Grand Vitara, shoppers can now drive home a new Maruti Suzuki for less than before.
The GST Rationalisation and Its Impact
On September 4, 2025, the GST Council passed one of its most significant amendments since the tax was initially established in 2017. The four-tier structure of 5%, 12%, 18%, and 28% has been replaced with a simplified two-slab system of 5% for necessary goods and 18% for discretionary items, with a separate 40% category for luxury vehicles, tobacco, and other non-essential high-end products.
Crucially, the council defined a "small car" as a vehicle under four metres with a petrol engine of less than 1,200 cc or a diesel engine of less than 1,500 cc. These vehicles, which form the foundation of Maruti Suzuki's portfolio, are now taxed at a mere 18%. Larger vehicles, regardless of engine size, are taxed at 40 percent. The government's campaign for EV adoption continues, with electric cars remaining at the lowest 5%.
How Much Are Prices Dropping?
Maruti Suzuki's price changes provide significant relief to customers across its ranges. The Alto K10 now starts at ₹3,69,900, a ₹1,07,600 discount. The popular Wagon-R has experienced a decrease of up to ₹79,600, putting its new starting price to ₹4,98,900. Compact SUVs are now more affordable, with the Brezza starting at ₹8,25,900 after a ₹1,12,700 decrease and the Grand Vitara starting at ₹10,76,500 after a ₹1 lakh reduction.
Even Maruti's premium XL6 MPV and Jimny SUV have received price reductions, making them more appealing to customers in the competitive mid-range SUV market. The Victoris SUV, positioned between the Fronx and Grand Vitara, comes with GST-adjusted pricing, starting at ₹10,49,900 and going up to ₹19,98,900 for hybrid option.
Why This Matters for Consumers and the Industry
These price cuts could not have come at a better moment for Indian families, who frequently view automobile ownership as a milestone. With inflationary pressures pressuring household finances, less expensive cars offer not only affordability but also a renewed demand for personal mobility. According to industry experts, Maruti Suzuki, which currently leads the compact car market, will benefit the most from this reform, bolstering its position in India's automotive industry.
On a broader scale, this legislation is expected to boost auto sales ahead of the holiday season. Dealers predict an increase in bookings, particularly for low-cost models like the Alto, Swift, and Baleno, as well as compact SUVs, which continue to dominate urban demand. The rationalization also demonstrates how tax policy can have a direct impact on consumer behavior and industry growth.
Looking Ahead
The GST rate drop has balanced the playing field for compact automobiles, providing Maruti Suzuki a competitive advantage while making larger vehicles more expensive. With EVs remaining around 5%, the government has clearly demonstrated its commitment to affordable clean mobility. For consumers, this is an opportunity to improve their vehicles at a lesser cost, whilst for the auto industry, it represents a chance to rebound stronger after years of slow demand.
Customers now have a real reason to contemplate their next purchase sooner rather than later, thanks to Maruti Suzuki's full pass-through. Whether it's the economical Alto K10 or the elegant Grand Vitara, the new GST policy has made cars more inexpensive than ever.