The Indian automotive industry has shifted into a new gear with the recent GST (Goods and Services Tax) reforms, which will come into effect on 22nd September 2025. The revised tax structure is expected to increase buyer footfall and give a much-needed boost to this festive season sales.
GST 2025 – What’s Changed?
As per the new GST norms, vehicles with petrol engines smaller than 1200cc will now fall under the 18% slab, replacing the earlier 28% category, which has been abolished. Larger cars and SUVs will now come under the new 40% GST slab, reduced from the previous 50%.
This change translates into the significant price cuts for all hatchbacks and subcompact SUVs, effective from the coming 22nd September. Buyers can save up to Rs 1.86 lakh on the sub-4 metre SUVs this Diwali season. Let’s take a look at the price cut offered on the popular compact SUVs.
Popular Subcompact SUVs – GST Price Cut 2025
| Models | GST Price Cut |
| Maruti Suzuki Brezza | Over 75,000 |
| Tata Nexon | Up to Rs 1.55 lakh |
| Hyundai Venue | Up to Rs 1.23 lakh |
| Mahindra XUV 3XO | Up to Rs 1.56 lakh |
| Maruti Suzuki Fronx | Up to Rs 1.10 lakh |
| Tata Punch | Up to Rs 85,000 |
| Kia Sonet | Rs 1,64,471 |
| Skoda Kylaq | Rs 1.19 lakh |
| Kia Syros | Rs 1,86,003 |
| Nissan Magnite | Rs 1 lakh |
| Renault Kiger | Rs 80,195 |
Brand-Wise Price Reduction
- Maruti Suzuki hasn’t yet revealed the official GST price cuts for its product lineup. However, speculations suggest that the popular Maruti Brezza will become cheaper by over Rs 75,000, while the Maruti Fronx could see a price reduction of up to Rs 1.10 lakh.
- Following the GST reforms, Hyundai’s Venue will be more affordable by up to Rs 1.23 lakh and the Mahindra XUV 3XO will be cheaper by up to Rs 1.56 lakh.
- Prices of the Kia Sonet and Syros subcompact SUVs have been reduced by Rs 1,64,471 and Rs 1,86,003, respectively. Meanwhile, Skoda’s smallest and most affordable SUV – the Kylq – has witnessed a price cut of Rs 1.19 lakh.
- Customers can also save up to Rs 1 lakh on the Nissan Magnite and up to Rs 80,195 on the Renault Kiger compact SUV.
What It Means for Buyers?
With lower GST slabs and significant price cuts, subcompact SUVs have become more attractive deals this festive season. The reforms are likely to increase demand and sales momentum across the car market.
