New version of GST has car buyers in India beaming. The reform, which was effective from September 22, 2025, replaces the old complex system. Small cars now attract just 18% GST instead of 28% and the the additional cess has been removed. It means prices have been slashed by Rs 20,000 to Rs 1 lakh on a number of models. For families aspiring to own their first car, it’s perhaps the most auspicious Diwali gift from the government.
Sales jumped 10-15% during festive months, with Tata making one day sales record of 10,000 units. People like you and I in cities like Delhi and Mumbai now have access to dependable rides that don’t break the bank. These aren’t merely statistics they make car ownership easier. EVs remain at 5% GST, green driving promoted. It’s 40% for luxury SUVs, but for the rest of us mere mortals; it’s good news all around.
With great mileage and affordable EMI, it is high time to visit the showrooms. Let’s analyze how the prices are affected and from the series select the cheapest option for you.
What Is GST2.0?
The 56th GST Council meeting was the origin of GST 2.0. It makes slabs in a way to make taxes more fairer. Small cars (less than 4 meters) with engine up to 1200cc petrol or 1500cc diesel are taxed at 18%. No more exhausting cess accumulates. So you get the savings that the manufacturers enjoy.
How Prices Fell
Car prices dipped right after the rollout. A basic hatchback that cost Rs 6 lakh now starts at Rs 5.5 lakh. That’s 10% off in many cases. Brands like Maruti and Tata reacted swiftly to the tag rework. Festive deals add extra cashback, to make it sweeter.
Gains for Small Cars
Hatchbacks and other small sedans benefit the most. Their GST cut saves Rs 30,000-50,000. Ideal for city commutes in Bengaluru or Pune. Fuel costs stay low too, at about Rs 5 per km. Middle-class households see cars as now being smart buys.
Brand Wise cuts
Rs 30,000 cut by Maruti Suzuki on entry models. Tata Tiago now at Rs 4.5 lakh. Hyundai i10 gets R25,000 off. Kia and Mahindra follow suit on budget SUVs. Competition heats up, so check local dealers for best deals.
EV Boost
EVs enjoy 5% GST only. MG Comet EV now under Rs 7 lakh. Range anxiety relax with more stations. In Kerala or Gujarat power costs are low and EVs run a lot they save big. Government subsidies add additional Rs 1.5 lakh.
Most Affordable Model: Vayve Eva
The least expensive new car in India right now is the Vayve Mobility Eva. It is priced at Rs 3.25 lakh ex-showroom. This tiny electric vehicle is an ideal fit for the city dwellers. Small in size to be parked even on congested roads.
What are Eva’s Key Features?
Eva features a 20 kWh battery pack with 130 km range. Max speed 70 km/h, more than sufficient for daily use Above tutti Variations Take is capable of work as daily use! It powers up in 4 hours at home. Basic safety like seatbelts and lights. No AC and power windows in base variant but it’s available with power windows in top variant.
Other Affordable Picks
Maruti S-Presso is up next at Rs 3.5 lakh. Mileage which is best 25 kmpl. Renault Kwid Rs 4.3 lakh with fun drive. Tata Tiago Rs 4.57 lakh scores 5-star safety. All witnessed a reduction of Rs 10,000-20,000 following the GST.
Buy Smart Now
Compare online first. Test drive to experience the ride. Finance at 8% interest that’s low. The insurance has also reduced in own damage part. Get same perks for rural dwellers through apps.
Future Outlook
Are anticipating 15% market growth next year . Coming more EVs and hybrids. Stable prices enable advance planning. GST 2.0: from affordable mobility to affordable everything.
Conclusion: Grab the Offer Today
GST 2.0 made the cars dreams affordable and the Vay’ve Eva led at Rs 3.25 lakh. It’s easy, green and friendly on your wallet. Go to a showroom now the discounts are not permanent. Drive safely and enjoy the new wheels!