Complete List Of Cars And Bikes That Became Cheaper Under Gst 20

The introduction of GST 2.0, effective from late September 2025, marks a major overhaul of the Goods and Services Tax system in India, bringing significant changes across multiple sectors including automobiles. The revamped GST structure reduces the tax burden on various vehicles by simplifying and lowering the GST slabs, resulting in remarkable price cuts for buyers. This update directly benefits consumers by making owning cars and bikes more affordable. 

What Changes Under GST 2.0? 

Previously, automobiles were taxed at 28% GST along with an additional compensational cess varying from 1% to 22%, making the effective tax rate steep. With GST 2.0, this has been simplified to just two slabs applicable to vehicles: 

• 18% GST for small cars — petrol/LPG/CNG engines under 1,200cc, diesel engines under 1,500cc, and cars less than 4 meters in length. 

• 40% GST for larger or luxury vehicles. 

For two-wheelers, nearly 98% market share is for bikes under 350cc. GST on these bikes has been reduced from 28% to 18%, drastically bringing down the cost. 

Brand-Wise Price Reductions on Cars 

Several major automobile manufacturers have passed on the tax benefits to customers with significant reductions. Here are some of the major brands and their revised price cuts: 

Bikes and Scooters Now More Affordable 

Two-wheelers under 350cc have witnessed the most enthusiastically welcomed price cuts due to GST 2.0, which brings down the GST from 28% to 18%. This includes scooters and motorcycles that dominate the Indian market share. 

Here’s a glimpse of the price reductions on popular models from major two-wheeler brands: 

Why This Matters for Buyers 

The revised GST structure represents a crucial step toward making personal transportation more affordable. The following benefits stand out: 

• Direct Price Relief: Consumers enjoy immediate reductions on ex-showroom prices. 

• More Affordable Entry-Level Vehicles: Pricing cuts mainly target smaller cars and bikes, encouraging first-time buyers and middle-class families. 

• Lower Insurance Premiums: Insurance premiums are also calculated based on vehicle value, so lower vehicle prices mean savings on insurance. 

• Boost for Auto Industry: The scheme stimulates vehicle sales, benefiting dealerships and manufacturers just before the festive season. 

• Ease of Tax Structure: GST 2.0 brings clarity and simplification by removing cess and multiple slabs. 

Summary Table of Key Price Cuts by Brand 

Conclusion 

GST 2.0 has emerged as a transformative reform in India’s automobile sector, bringing substantial relief to buyers across the country. By simplifying tax slabs and significantly lowering GST rates on small cars and two-wheelers, the government has made personal mobility more affordable and accessible. Price reductions range from moderate cuts on entry-level hatchbacks and popular commuter bikes to dramatic discounts on premium SUVs and luxury vehicles. 

This reform not only benefits consumers with lower upfront costs but also lowers insurance premiums tied to vehicle values, resulting in long-term savings. Automakers across segments have swiftly passed on these tax benefits ahead of the festive season, boosting demand and stimulating the auto industry's growth during challenging economic times. 

First-time buyers, budget-conscious families, and even aspirational luxury car owners stand to gain tremendously from GST 2.0. With more affordable options available, this tax overhaul is set to accelerate vehicle sales, strengthen domestic manufacturing competitiveness, and contribute to overall economic growth. 

In summary, GST 2.0 represents a progressive step towards making the dream of owning a car or bike a reality for millions, while encouraging demand-driven growth in India's automotive market.