GST 2.0 Benefits: MG SUVs Prices Down by up to Rs. 3.04 Lakh

The automotive industry in India is witnessing a significant shift with the implementation of GST 2.0, bringing relief to customers with reduced prices on popular vehicles. On September 9, 2025, at 03:19 PM IST, JSW MG Motor India announced a major update, passing the full benefits of the revised GST structure to its customers. Effective from September 7, 2025, this breaking news report highlights how MG SUVs, including the Astor, Hector, and Gloster, have seen price reductions of up to Rs. 3.04 lakh, marking the latest development in the automotive sector ahead of the festive season.

Overview of GST 2.0 and Its Impact on MG SUVs

The Indian government’s GST 2.0 reform, effective from September 7, 2025, has reshaped the taxation landscape for the automotive industry. One of the key changes is the reduction of GST on SUVs from the previous range of 45-50 percent to a uniform 40 percent. JSW MG Motor India has swiftly responded by extending these benefits across its internal combustion engine (ICE) lineup, including the Astor, Hector, and Gloster SUVs. This move is designed to make these vehicles more affordable, especially as the festive season approaches, a period traditionally marked by high vehicle sales.

The decision to lower GST rates reflects the government’s intent to stimulate demand in the automotive sector, which has faced challenges in recent years. For MG, this translates into significant price cuts, with the Gloster SUV offering the highest benefit of up to Rs. 3.04 lakh. This update not only benefits customers but also positions MG as a competitive player in the SUV market, aligning with the latest trends in the industry.

Detailed Price Reductions Across MG SUV Models

JSW MG Motor India has meticulously calculated the GST benefits for each SUV model, ensuring customers receive the maximum advantage from the revised tax structure. The Astor, the entry-level SUV in the lineup, now offers a price reduction of up to Rs. 54,000, making it an attractive option for urban buyers. The Hector, available in both petrol and diesel variants, sees a substantial cut of up to Rs. 1.49 lakh, enhancing its appeal in the mid-size SUV segment.

The flagship Gloster SUV stands out with the most significant reduction of up to Rs. 3.04 lakh, reflecting its higher original tax burden under the previous GST regime. This price drop is a game-changer for buyers seeking premium features in a full-size SUV, positioning the Gloster as a top choice in its category. These reductions, effective from September 7, 2025, are part of MG’s commitment to pass on the full GST benefit, as confirmed by the company’s leadership.

The price adjustments vary based on model variants and engine types, ensuring a tailored benefit for each customer segment. For instance, the Hector’s dual powertrain options allow buyers to choose between petrol and diesel versions, both benefiting from the same Rs. 1.49 lakh reduction. This strategic pricing strategy underscores MG’s focus on customer satisfaction and market competitiveness in this latest automotive update.

Additional Incentives and Electric Vehicle Policy

In addition to the GST benefits, JSW MG Motor India has introduced further incentives to boost sales during the festive season. The company is offering 100 percent on-road funding, allowing customers to finance the entire vehicle cost, including registration and insurance. A three-month EMI holiday is also part of this package, providing financial flexibility for buyers planning purchases around festivals like Navratri and Diwali.

Vinay Raina, Chief Commercial Officer of JSW MG Motor India, emphasized the company’s intent, stating, “By extending the full benefit of this reform across our SUV portfolio, we want to ensure that customers experience the immediate value of this change.” This customer-centric approach aims to enhance affordability and drive demand, aligning with the festive shopping surge expected in late September and October 2025.

Regarding the electric vehicle (EV) segment, MG’s Comet EV, ZS EV, and Windsor EV continue to attract a five percent GST, unchanged by the recent reforms. This policy reflects the government’s ongoing push to promote EV adoption, a strategy that MG supports by maintaining competitive pricing on its electric lineup. While the focus of this update is on ICE SUVs, the stable GST rate on EVs ensures continued growth in the green vehicle market.

Industry-Wide Response to GST 2.0

MG is not alone in passing on GST 2.0 benefits to customers. Other major automakers, including Hyundai, Tata, Mahindra, and Toyota, have adopted a similar approach, reducing prices across their ICE vehicle ranges. This industry-wide trend indicates a collective effort to stimulate demand and boost consumer confidence in the automotive market, especially as the festive season nears.

For instance, Hyundai has adjusted prices on models like the Creta and Venue, while Tata has offered reductions on the Nexon and Harrier. Mahindra and Toyota have followed suit with their XUV700 and Fortuner models, respectively, ensuring that customers across various segments benefit from the GST revision. This synchronized response highlights the broader impact of GST 2.0, making this report a comprehensive update on the latest automotive industry developments.

The collaborative action by these brands underscores the significance of the festive season, a critical period for vehicle sales in India. By aligning price reductions with consumer purchasing patterns, these companies aim to capitalize on the increased demand, further solidifying the positive reception of the GST 2.0 reforms in the market.