Tata Motors to cut car, SUV prices sharply after GST reduction; popular model to get cheaper by Rs 1.55 lakh

Bigger SUVs such as the Harrier and Safari will see price cuts of up to Rs1.40 lakh and Rs 1.45 lakh, respectively

Tata Motors on Friday said it will pass on the full benefit of the recent GST rate reduction to customers across its cars and SUVs, with price cuts of up to Rs 1.55 lakh effective September 22, when the revised tax slabs come into force.

Tata Motors said its entry-level hatchback Tiago will become cheaper by Rs 75,000, while compact sedan Tigor will see a reduction of Rs 80,000. The Altroz hatchback will witness the steepest cut among small cars, with prices lowered by Rs 1.10 lakh.

Among SUVs, the Punch will be cheaper by Rs 85,000 and the popular Nexon by Rs 1.55 lakh. Tata’s recently launched mid-sized model Curvv will also see a price reduction of Rs 65,000.

For the company’s premium offerings, Harrier and Safari, the price will come down by Rs 1.40 lakh and Rs 1.45 lakh respectively, Tata Motors said in a statement.

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd., said, “The reduction in GST on passenger vehicles, effective 22 September 2025, is a progressive and timely decision that will make personal mobility more accessible for millions across India. In line with the Prime Minister’s vision, the Finance Minister’s intent and our Customer First philosophy, Tata Motors will fully honor the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers.”

The GST Council this week approved a major restructuring of tax slabs for automobiles, which will take effect from September 22, coinciding with the start of Navaratri.

As per the revised structure, vehicles powered by petrol, LPG or CNG with engine capacity below 1,200 cc and length not exceeding 4,000 mm, along with diesel vehicles up to 1,500 cc and 4,000 mm, will now attract 18 per cent GST.

Larger vehicles — those above 1,200 cc in petrol or 1,500 cc in diesel, and exceeding 4,000 mm in length — will be taxed at 40 per cent, the Council decided.