The automotive sector in India is buzzing with excitement as the Central Government’s new Goods and Services Tax (GST) slabs bring significant relief to car buyers. On September 9, 2025, at 03:33 PM IST, Tata Motors, a leading automaker, announced a breaking news update, passing the full GST benefits to its customers. Effective from September 22, 2025, this latest development offers massive savings of up to Rs. 1.55 lakh on popular models like the Nexon, Punch, Harrier, and Safari, marking a pivotal moment in the industry ahead of the festive season.
The introduction of GST 2.0 has reshaped the taxation framework for vehicles in India, with the government reducing taxes on internal combustion engine (ICE) cars across various segments. This reform, effective from September 22, 2025, aims to boost consumer demand and make personal mobility more accessible. Tata Motors has responded proactively by committing to pass the entire range of savings to its customers, based on the variant chosen, aligning with the latest automotive market trends.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd., emphasized the company’s customer-first philosophy, stating that this move honors the government’s intent to enhance affordability. Unlike electric vehicles (EVs), which retain a 5 percent GST rate to encourage green mobility, ICE vehicles are seeing substantial tax reductions, benefiting models across Tata’s diverse portfolio. This update positions Tata as a leader in responding to the GST 2.0 reforms.
Tata Motors’ eight ICE models are now more affordable, with four— including the Altroz and Nexon—offering price slashes exceeding Rs. 1 lakh. The company has outlined the savings for each model, ensuring customers receive the maximum benefit from the revised GST slabs. Below is a detailed table showcasing the full GST benefits for each Tata car:
Model | Full GST Benefits |
---|---|
Tiago | Up to Rs 75,000 |
Tigor | Up to Rs 80,000 |
Altroz | Up to Rs 1.1 lakh |
Punch | Up to Rs 85,000 |
Nexon | Up to Rs 1.55 lakh |
Curvv | Up to Rs 65,000 |
Harrier | Up to Rs 1.4 lakh |
Safari | Up to Rs 1.45 lakh |
The savings vary depending on the variant and powertrain option, with the highest benefits observed on sub-4m diesel models like the Altroz and Nexon, offering up to Rs. 1.55 lakh. Customers are advised to contact their nearest Tata dealership to confirm exact savings for their preferred model and variant, as these figures represent the maximum potential reduction.
Overall, customers can enjoy savings of up to 13 percent, depending on the model and configuration. This significant reduction enhances the value proposition of Tata cars, making them a top choice for first-time buyers and those upgrading to SUVs, especially with the festive season demand on the horizon.
The new GST slabs have introduced a more streamlined tax structure, benefiting different vehicle categories with varying degrees of savings. The revised rates, effective from September 22, 2025, replace the earlier complex system with clear reductions. Below is a table detailing the old and new GST rates, along with the resulting savings:
Type Of Vehicle | Old GST Slab (Including Cess) | New GST Rates | Savings |
---|---|---|---|
Sub-4 metre (Petrol) | 29 percent (28 percent GST + 1 percent cess) | 18 percent | 11 percent |
Sub-4 metre (Diesel) | 31 percent (28 percent GST + 3 percent cess) | 18 percent | 13 percent |
Cars over 4 metres in length with engine capacity up to 1,500cc | Up to 45 percent (28 percent GST + 17 percent) | 40 percent | 5 percent |
SUVs (above 4 metres in length with engine capacity exceeding 1,500cc) | Up to 50 percent (28 percent GST + up to 22 percent cess) | 40 percent | 10 percent |
The highest savings of 13 percent are applicable to sub-4m diesel vehicles, including the Altroz and Nexon, which align with the maximum Rs. 1.55 lakh reduction. Larger SUVs like the Harrier and Safari benefit from a 10 percent savings, translating to up to Rs. 1.45 lakh and Rs. 1.4 lakh, respectively. This structured tax revision ensures that customers across different vehicle types experience tangible financial relief.
Additionally, the price revision extends to hybrids and luxury cars, broadening the scope of savings. While this report focuses on Tata’s ICE lineup, the inclusion of these categories reflects the comprehensive impact of GST 2.0, making it a key update for automotive enthusiasts and potential buyers.
Tata Motors has outlined that the revised prices will come into effect from September 22, 2025, aligning with the implementation of the new GST slabs. While the company has disclosed the model-wise benefits, the exact variant-wise prices will be finalized closer to the effective date. This phased approach allows Tata to tailor reductions based on specific configurations, ensuring accuracy and fairness.
Customers are encouraged to visit their nearest Tata dealership to get precise savings details for their preferred model and variant. This personalized consultation is crucial, as the savings depend on factors like trim level, engine type, and regional pricing variations. With the festive season approaching, early planning and dealership visits can secure these benefits, making this report a valuable resource for prospective buyers.
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