Maruti Suzuki Announces New Car Prices After GST Rate Cut: Full List Revealed

Maruti Suzuki India Ltd., the country’s largest car manufacturer, has officially announced revised prices across its product lineup following the GST rate cuts implemented by the government. The announcement ensures that the full benefits of tax reductions are passed on to consumers, making Maruti Suzuki cars more affordable.

The move comes after the government introduced one of the biggest reforms to the Goods and Services Tax since its inception in July 2017. By rationalising GST slabs, cars are now taxed more clearly based on their size and engine capacity, creating a direct impact on vehicle affordability across categories.

Government’s GST Rationalisation Explained

On 4 September 2025, the government restructured GST from four slabs (5%, 12%, 18%, and 28%) to two slabs (5% and 18%), with an additional 40% slab for luxury and tobacco products.

Here’s a breakdown of how cars are now classified under GST:

• Small Cars: Less than 4 metres in length, petrol engines up to 1,200 cc, or diesel engines up to 1,500 cc. These attract 18% GST.
• Bigger Cars / Luxury Cars: More than 4 metres in length with petrol engines above 1,200 cc or diesel engines above 1,500 cc. These attract 40% GST.
• Electric Vehicles (EVs): Continue to attract 5% GST, encouraging adoption of green mobility.
• Hybrid Cars: Classified based on the same size and engine rules as petrol and diesel vehicles.

This rationalisation ensures simplicity in taxation and boosts competitiveness for manufacturers like Maruti Suzuki, which sells a majority of its cars in the small car segment.

Summary Table: Maruti Suzuki New Car Prices After GST Cut

Maruti Suzuki’s Revised Prices After GST Cut

Following the government’s decision, Maruti Suzuki swiftly updated its pricing structure to reflect the tax reductions. According to the company’s announcement:

• The entry-level Alto K10 now starts at ₹3,69,900, down by ₹1,07,600.
• The Grand Vitara SUV also saw a price reduction of ₹1,07,600, with prices now beginning at ₹10,76,500.

Other models, including hatchbacks, sedans, and SUVs, have also witnessed price cuts depending on which tax category they fall under. The updated pricing ensures that customers can enjoy lower costs without compromising on features or performance.

Special Case Models: Jimny and Ertiga

Despite being shorter than 4 metres, the Maruti Suzuki Jimny falls into the 40% GST bracket due to its 1.5-litre petrol engine. Similarly, the Ertiga, though powered by a 1,198 cc petrol engine, measures 4.3 metres in length, placing it outside the small car definition.

This highlights how both engine capacity and vehicle size need to meet the GST Council’s criteria for small cars to qualify for the lower 18% rate.

Maruti Suzuki Victoris: Prices Post-GST Cut

One of Maruti Suzuki’s latest models, the Victoris compact SUV, is also included in the new pricing structure. Positioned between the Fronx and Grand Vitara, the Victoris is designed to capture the growing demand for mid-sized SUVs in India.

The Victoris SUV now comes at:

• ₹10,49,900 for the base variant
• ₹19,98,900 for the top-spec strong hybrid model

The Victoris will be available through Maruti Suzuki’s Arena dealerships and is expected to further strengthen the company’s SUV portfolio.

Maruti Suzuki’s Competitive Advantage

Chairman RC Bhargava emphasized that the GST restructuring will make Indian products more competitive globally. By reducing the tax burden, Maruti Suzuki can now offer lower prices, which is particularly significant given the company’s dominance in the small car category.

He stated:

“Competition, combined with your ability to produce and sell at lower prices, makes for the best efficiency.”

This price rationalisation also comes ahead of the festive season, traditionally the strongest period for automobile sales in India.

Impact on Indian Consumers

The GST cuts directly benefit car buyers in multiple ways:

1. Lower Prices: Cars across Maruti Suzuki’s portfolio are more affordable, especially small cars like the Alto, Swift, and WagonR.
2. More Transparent Taxation: Consumers now have clarity on how vehicles are taxed, reducing confusion.
3. Boost for SUV Buyers: With the introduction of new models like the Victoris, buyers in the SUV segment gain access to competitively priced options.
4. Encouragement for Electric Adoption: With EVs taxed at just 5%, customers are incentivized to consider greener alternatives.

FAQs

Q1: Why have Maruti Suzuki car prices been revised?

Prices were revised to pass on the full benefit of the government’s GST rate cut to customers.

Q2: What is the new GST rate for small cars?

Small cars now attract 18% GST if they are less than 4 metres long and meet engine size criteria.

Q3: Are SUVs like the Jimny and Ertiga cheaper now?

Not significantly, as both models fall under the 40% GST bracket due to their size or engine capacity.

Q4: What is the price range of the new Victoris SUV?

The Victoris starts at ₹10,49,900 and goes up to ₹19,98,900 for the top hybrid variant.

Q5: Where can I check the updated car prices?

You can visit the Maruti Suzuki Official Site for the latest pricing details.

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