The introduction of GST 2.0 has brought significant price adjustments in the Indian automobile market, particularly in the sub-4 metre segment. Prices for cars measuring 4 metres or below in length, which are powered by an engine less than 1200cc (petrol) or 1500cc (diesel) have benefitted from the latest tax revision. The GST rates for such cars have been reduced from 28 percent to 18 per cent, and were effective from September 22. This category includes compact SUVs, hatchbacks, and sedans that already dominate sales charts due to their affordability and practicality. With the new tax revisions, several models have witnessed price reductions, with some crossing the ₹1.5 lakh mark.
| Model | GST 2.0 Benefit |
|---|---|
| Kia Syros | ₹1,86,000 |
| Kia Sonet | ₹1,64,000 |
| Mahindra XUV 3XO | ₹1,56,000 |
| Tata Nexon | ₹1,55,000 |
| Mahindra Thar | ₹1,35,000 |
| Maruti S-Presso | ₹1,30,000 |
| Hyundai Venue | ₹1,24,000 |
| Honda Amaze (3rd gen) | ₹1,20,000 |
| Skoda Kylaq | ₹1,19,000 |
| Tata Altroz | ₹1,12,000 |
Kia Syros & Sonet
Among the biggest beneficiaries are the Kia Syros and Kia Sonet, which registered reductions of ₹1.86 lakh and ₹1.64 lakh respectively. The Syros, which has been attracting strong demand since its launch, now gains a fresh boost thanks to the sizeable cut, especially in the diesel variant. The Sonet, already a volume seller, also becomes more competitive against rivals. These revised prices could help Kia maintain its momentum in a segment where customers place a strong emphasis on features, styling, and overall value for money.
XUV 3XO & Nexon
Mahindra’s XUV 3XO and Tata’s Nexon are not far behind, with benefits of ₹1.56 lakh and ₹1.55 lakh respectively. Both models are already among the most recognisable names in the sub-4 metre SUV space. The XUV 3XO recently gained attention for its updated design and improved feature set (Rev X), while the Nexon continues to be one of Tata’s best-selling models. The revised prices are likely to expand their customer base further, especially among buyers who seek compact dimensions with good safety credentials.
Thar & S-Presso
Interestingly, the Mahindra Thar and Maruti S-Presso, two vehicles with very different target audiences, also feature prominently in the revised price list. The Thar, a lifestyle SUV, now comes with a benefit of ₹1.35 lakh. This makes it more attractive for enthusiasts who might have been on the fence. On the other hand, the S-Presso, positioned as an entry-level city car, sees a reduction of ₹1.30 lakh. It is also the most affordable car in the market right now. This makes it even more appealing for budget-conscious buyers for whom affordability is key.
Venue & Amaze
Hyundai’s Venue and Honda’s third-generation Amaze have also received noteworthy price cuts of ₹1.24 lakh and ₹1.20 lakh respectively. The Venue, one of the best-selling compact SUVs, now gains an edge in terms of affordability while still offering a wide variety of engine and feature options. The Amaze, a compact sedan that caters strongly to family buyers, also benefits from the revised structure. For customers looking for a well-priced sedan in the sub-4 metre range, along with ADAS, the new price point makes the Amaze a good choice.
Kylaq & Altroz
Rounding off the top ten are the Skoda Kylaq and Tata Altroz, which received revisions of ₹1.19 lakh and ₹1.12 lakh respectively. The Kylaq, which recently surpassed 30000 sales, is likely to gain further traction with this cut. The Altroz, Tata’s premium hatchback, also becomes more appealing in a market where hatchbacks still account for a large share of overall passenger car sales. Together, these reductions show how GST 2.0 has created a ripple effect across body styles, offering benefits not just in SUVs but also in hatchbacks and sedans.
