Maruti Suzuki set a new record by selling 30,000 cars on the first day of Navratri, just before the implementation of GST 2.0. The benefit of price reductions on small cars has been passed on to customers. According to the new GST rates, small cars will be taxed at 18% and large cars at 40%, while electric cars will remain at 5%.
GST price cut Impact: Maruti Suzuki recorded sales of 30,000 cars on the first day of Navratri, ahead of the new GST 2.0 rates coming into effect in New Delhi on September 22, 2025. The company benefited customers by reducing prices of cars like the entry-level Alto K10 and Grand Vitara. According to the new GST rates, small cars will be subject to an 18% tax, and large or luxury cars to a 40% tax, while electric cars will continue to have a 5% tax.
How much have the new prices changed?
Maruti reduced the price of its entry-level model Alto K10 by ₹1,07,600. This car will now be available for ₹3,69,900. Meanwhile, the price of the Grand Vitara has also decreased to ₹10,76,500. This boosted customer enthusiasm and led to a significant surge in sales on the first day of Navratri.
New GST 2.0 Rates Implemented
On September 4, 2025, the government announced a reduction in GST rates on hundreds of products, ranging from soaps to small cars. This change is considered the biggest tax reform since the implementation of GST. Previously, there were four tax slabs (5%, 12%, 18%, and 28%), which have now been reduced to just two slabs (5% and 18%).
According to the government, small cars will be those with a length of less than 4 meters, a petrol engine capacity of less than 1,200cc, and a diesel engine capacity of less than 1,500cc. These cars will be subject to an 18% GST.
Conversely, large or luxury cars will have a length exceeding 4 meters, and a petrol engine larger than 1,200cc or a diesel engine larger than 1,500cc. These cars will incur a 40% GST. The same rules will apply to hybrid cars. Electric cars will continue to have a 5% GST, as before.
Which Cars Will Be Most Affordable?
Most Maruti cars fall into the small car category. Therefore, Maruti Suzuki is likely to benefit the most from the new GST rates. However, it is essential for a car to meet all parameters to qualify as a small car.
For instance, although the Jimny is less than 4 meters in length, its 1.5-liter petrol engine places it in the 40% tax slab. Similarly, the Ertiga has a 1,198cc engine, but its length of 4.3 meters also puts it in the 40% slab.
Maruti's Record-Breaking Figures
According to Maruti's sales data, 30,000 cars were delivered across the country on the first day of Navratri. The company's CRM department reported that approximately 80,000 customer inquiries were also received on this day. This is an encouraging sign not only for Maruti but for the entire Indian automobile sector.
Customers were eager to make purchases immediately after the new GST rates came into effect. The price reductions on small cars increased customer interest. Furthermore, the festive season and the start of Navratri also contributed to the rise in sales. Maruti fully capitalized on this opportunity and recorded record-breaking sales figures.
Impact on Other Companies
From Maruti to Mercedes and other brands, the new GST rates led to changes in car prices. Small and mid-size cars became the most affordable. The impact on large and luxury cars remained limited. This change generated enthusiasm and a wave of purchases in the automobile market.
