From Toyota Fortuner to Mahindra XUV700: Prices of 7-seater SUVs drop by up to Rs 3.49 lakh after GST 2.0

The 7-seater SUVs have become more affordable in India.

If you have been planning to buy a big 7-seater SUV, there is good news. Under the new GST 2.0 regime, prices of several popular three-row SUVs have come down, with cuts as high as Rs 3.49 lakh. The government has reduced the GST burden on larger vehicles, and carmakers have passed on the savings to customers.

Toyota, MG and Jeep see the biggest drops

Toyota buyers are the biggest gainers. The Toyota Fortuner is now cheaper by up to Rs 3.49 lakh, with the entry price revised to Rs 33.65 lakh. The more premium Legender has also received a cut of up to Rs 3.34 lakh, and now starts at Rs 41.54 lakh.

The MG Gloster is cheaper by up to Rs 3.04 lakh, bringing its new base price to Rs 39.80 lakh. Jeep has also lowered prices of the Meridian by up to Rs 2.47 lakh, with the SUV now starting at Rs 23.33 lakh.

Tata, Mahindra and Hyundai pass on savings

In the mid-size space, the Tata Safari has seen a drop of up to Rs 1.48 lakh, with its base variant now priced at Rs 14.66 lakh.

Mahindra's two popular 7-seaters have also become more affordable. The Scorpio-N is down by up to Rs 1.45 lakh, with prices starting at Rs 13.20 lakh. The XUV700 has received a cut of up to Rs 1.43 lakh, bringing its entry price to Rs 13.19 lakh.

The Hyundai Alcazar has seen the smallest reduction, up to Rs 75,376, but the new starting price has come down to Rs 14.47 lakh, making it more competitive against rivals.

Why the cuts happened

Earlier, larger SUVs attracted the highest tax slab of 28% GST plus a compensation cess of 20-22%. Under GST 2.0, the government has rationalised these rates, including for 7-seater SUVs. With lower taxes, the ex-showroom prices have come down, giving direct savings to buyers.

Depending on the model, customers now stand to save anywhere between Rs 75,000 and Rs 3.5 lakh compared to earlier.

Market impact

Industry analysts expect these cuts to boost demand, especially during the festive season. SUVs like the Safari, Alcazar, Scorpio-N and XUV700 are now priced closer to smaller five-seater SUVs, which could pull in more family buyers.

At the premium end, models like the Fortuner and Gloster are now better positioned. The Jeep Meridian, which struggled against the Fortuner earlier, may also see stronger traction with its revised pricing.

Automakers are already promoting these lower prices in their festive campaigns, hoping to drive sales momentum.