Hyundai Motor India announces significant price reductions under GST 2.0, effective 22 September 2025, delighting car buyers.
Hyundai Motor India Limited (HMIL) has thrilled car enthusiasts with substantial price reductions across its popular models. This follows the GST 2.0 reforms, effective 22 September 2025. The move aligns with the festive season, boosting affordability.
Consequently, buyers can now own their dream Hyundai car at lower costs. The government’s GST 2.0 initiative simplifies tax slabs, reducing rates for small cars and removing the compensation cess. Hyundai’s decision to pass these benefits to customers strengthens its market position.
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Impact of GST 2.0 on Hyundai Buyers
The GST 2.0 reforms have reshaped automobile taxation in India. Small cars under four metres with engines up to 1,200cc (petrol) or 1,500cc (diesel) now attract an 18% GST, down from 28%. Larger vehicles face a 40% GST but benefit from cess removal. For instance, the Hyundai Tucson sees the highest price cut of ₹2,40,303. Meanwhile, the Grand i10 Nios drops by ₹73,808, and the Creta by up to ₹72,145.
These reductions make Hyundai’s lineup more accessible. Moreover, the festive season timing amplifies buyer excitement. Hyundai expects a surge in demand, especially for models like Venue and i20. This strategic move enhances Hyundai’s appeal among budget-conscious buyers.
Historical Context and Future Prospects
In the past, high GST rates and compensation cess inflated car prices in India. The earlier tax structure, ranging from 29% to 50%, burdened buyers. For example, SUVs like the Hyundai Creta carried a 28% GST plus a 22% cess. The GST 2.0 reforms eliminate this cess, lowering effective taxes. Previously, Hyundai adjusted prices during tax changes, but this scale of reduction is significant.
Looking ahead, these cuts could boost sales during Navratri and Diwali. Additionally, Hyundai’s focus on affordability aligns with India’s Viksit Bharat vision. Unsoo Kim, Managing Director, HMIL, praised the government’s progressive GST 2.0 move.
He believes it empowers millions by making mobility affordable. However, some variants’ final prices may vary slightly due to Hyundai’s pricing strategy adjustments.
The price cuts cover models like Aura (₹78,465 reduction), Exter (₹89,209), and Verna (₹60,640). This broad approach ensures every segment benefits. Furthermore, competitors like Tata and Mahindra have also reduced prices, intensifying market competition.
As a result, buyers gain more options at lower costs. Hyundai’s proactive response to GST 2.0 could set a trend for other manufacturers. Ultimately, this move promises a vibrant festive season for car buyers.
