**GST 2.0 Overhaul: Indian Government Introduces Major Tax Reforms to Make Cars More Affordable**
*By Dwaipayan Roy | Sep 22, 2025 05:21 pm*
The Indian government has launched a significant overhaul of the Goods and Services Tax (GST) structure, branded as GST 2.0. This new tax regime, which came into effect today, aims to simplify the tax framework and make cars more affordable for Indian consumers.
The reform is expected to provide a substantial boost to automobile sales, particularly benefitting the compact SUV segment. With simplified tax slabs and reduced rates, several popular models are set to see attractive price cuts.
### Market Impact
The GST 2.0 reforms are poised to benefit several compact and sub-compact SUVs across the country. Alongside festive offers currently available, these price reductions are likely to make these vehicles more appealing to buyers.
### Affected Models
Some of the key SUVs expected to benefit under the new tax regime include:
– Tata Punch
– Tata Nexon
– Maruti Suzuki Brezza
– Hyundai Venue
– Kia Sonet
– Mahindra XUV3O
– Renault Kiger
Below is a detailed look at how GST 2.0 has impacted the pricing of these popular models:
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### Tata Punch
Since its launch, the Tata Punch has quickly risen to become one of India’s best-selling cars. Its compact design, robust build quality, and premium features have attracted many buyers.
Under GST 2.0, Tata Punch receives a price cut of ₹71,000, bringing its starting price down to ₹5.49 lakh (ex-showroom). This makes it an even more affordable option in the compact SUV segment.
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### Tata Nexon
Another favorite from Tata Motors, the Nexon continues to offer a premium feel and commendable performance at great value.
The GST revision has reduced the Nexon’s starting price by up to ₹68,000, now priced at ₹7.32 lakh (ex-showroom). This reduction enhances its attractiveness for customers seeking quality and affordability.
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### Hyundai Venue
The Hyundai Venue has established itself as a strong contender in the compact SUV market.
With a price cut of up to ₹68,000 under the new GST structure, its starting price is now ₹7.26 lakh (ex-showroom). This helps the Venue maintain a competitive edge for value-driven buyers.
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### Maruti Suzuki Brezza
A long-standing favorite in the Indian automotive landscape, the Maruti Suzuki Brezza has made compact SUVs accessible to a wide range of customers.
The GST 2.0 reforms have resulted in a ₹43,000 price reduction, bringing the starting price down to ₹8.26 lakh (ex-showroom), enhancing its appeal in a competitive segment.
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### Mahindra XUV3O
Known for its sharp design and upmarket features, the Mahindra XUV3O also benefits from the new tax structure.
With a price cut of up to ₹71,000, its starting price is now ₹7.28 lakh (ex-showroom). Additionally, the XUV3O boasts an impressive five-star Global NCAP safety rating, making it a compelling choice for safety-conscious buyers.
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### Kia Sonet
The Kia Sonet, Kia’s most affordable offering in India, has likewise seen price benefits under GST 2.0.
Prices have been reduced by ₹70,000, bringing the starting cost to ₹7.30 lakh (ex-showroom), making it a highly competitive option in the compact SUV segment.
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### Conclusion
The introduction of GST 2.0 has simplified the tax structure and brought meaningful price reductions across several popular compact SUV models in India. Combined with festive discounts, these changes are expected to enhance consumer affordability and invigorate sales in the Indian auto market.
As a result, buyers seeking value-packed SUVs now have more attractive options to consider, signaling a positive outlook for the industry in the months ahead.
https://www.newsbytesapp.com/news/auto/gst-2-0-has-made-these-cars-cheaper-in-india/story