GST 2.0 effect: SUV at hatchback price! Punch, Brezza, Venue, Sonet, XUV 3XO, Kylaq get cheaper

Few SUVs are now available for less than Rs 6 lakh (ex-showroom).

The Goods and Services Tax (GST) 2.0 regime has kicked in with the new slabs becoming effective today. It has also coincided with the first day of the nine-day Navaratri festival. With cars becoming relatively affordable amid rate rationalisation, this might be the right time for you to buy that small SUV you have been dreaming about.

The sub-Rs 10 lakh (ex-showroom) space was once dominated by hatchbacks. However, small SUVs such as the Tata Punch, Tata Nexon, Maruti Suzuki Brezza, Maruti Suzuki Fronx, Hyundai Exter, Hyundai Venue, Kia Sonet, Kia Syros, Mahindra XUV 3XO, Skoda Kylaq, Renault Kiger and Nissan Magnite have gained immense popularity now.

While small SUVs could be had for less than Rs 10 lakh in the GST 1.0 regime, their prices have dropped significantly in the GST 2.0 regime due to lower taxes.

The entry-level variant of the Brezza has received a price cut of Rs 43,000 and is now priced at Rs 8.26 lakh. The base variant of the Fronx is now priced at Rs 6.85 lakh, following a price drop of Rs 69,000.

You can get the Punch for as low as Rs 5.49 lakh and the Nexon for Rs 7.32 lakh. The entry-level variants of the Punch and the Nexon have received a price cut of Rs 71,000 and Rs 68,000, respectively.

Mahindra has slashed the price of the base variant of the XUV 3XO by Rs 71,000 and it now comes at Rs 7.28 lakh. The entry-point for the Exter and the Venue is lower by Rs 51,000 and Rs 68,000 at Rs 5.49 lakh and Rs 7.26 lakh, respectively.

Kia's small SUVs like the Sonet and the Syros now start at Rs 7.30 lakh and Rs 8.67 lakh, respectively. While the Sonet has become cheaper by Rs 70,000, the price drop is Rs 83,000 for the Syros.

The base variant of the Kylaq is under Rs 8 lakh now. With a price drop of Rs 70,000, you can have it for just Rs 7.55 lakh. The Kiger's entry-level variant is cheaper by Rs 54,000 at Rs 5.76 lakh and that of the Magnite by Rs 52,000 at Rs 5.62 lakh.

For reference, all the prices mentioned are ex-showroom.

SMALL SUV: GST PRICE CUT

The small SUVs, up to 4 metres in length, earlier attracted a GST of 28% and a compensation cess of 1% to 3%. Therefore, the total tax incidence would be from 29% to 31%. Now, such models have been placed in the 18% GST slab. Also, there is no compensation cess on automobile anymore. lower taxes have resulted in prices going down.

On a standalone basis, the small SUV segment is the single largest segment in the Indian car market. At 13,58,595 units in FY25, it accounted for 31.2% of the total car sales and 57.4% of the total SUV sales.