What Will Be Tata Cars Price After GST Cut? Tiago, Altroz, Nexon, Safari, Harrier Price To Drop By Rs 1.5 Lakh

Days after the massive Goods and Services Tax (GST) rationalisation on cars and other items, Tata Motors recently announced to fully pass on the GST rate cut benefit to customers. This would significantly reduce Tata cars's price, including Tiago, Tigor, Altrozz, Curvv, Harrier, and Safari.

As the GST rate cut will come into effect from September 22, Tata cars' prices will include the revised GST rates from the same date. "Tata Motors, India's leading automotive manufacturer, today announced that it will pass on the full benefit of the recent GST reduction on its cars and SUVs to customers, effective 22nd September 2025, the date the revised GST rates come into effect," stated the company in its press release on Friday.

How Much Tata Cars Price Will Fall After GST Rate Cut?

The GST council meeting, which concluded on September 4, decided to rationalise GST into a two-slab system of 5% and 18%. The older GST slabs of 12% and 28% will be removed.

"The reduction in GST on passenger vehicles, effective 22nd September 2025, is a progressive and timely decision that will make personal mobility more accessible for millions across India," said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd.

As per the press release, GST rates will cause a reduction of around Rs 50,000- Rs 1,50,000 on Tata cars.

"Tata Motors will fully honor the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers. This will make our popular range of cars and SUVs even more accessible across segments, enabling first-time buyers and accelerating the shift towards new age mobility for a wider spectrum of customers," he added.

GST on SUVs like Tata Safari, Tata Harrier, etc may see a price reduction of up to Rs 1.40 lakh. However the price of these cars may vary based on their models, features and variants. Tata cars new prices may also depend on the showroom and cities from where buyers are planning to purchase.

The price reduction would help Tata Motors to significantly boost their sales and make the best use of the incoming festive season. The August month sales data remained strong and the reduction in cars prices will significantly boost Tata Motors cars sales. Other than Tata Motors, other automakers like Renault, Maruti Suzuki have also announced to reduce their car prices by fully passing on the GST rate cut benefit to customers.

The GST rate cut was announced by the government this week after PM Narendra Modi in August hinted of GST rationalisation. During his 15th August speech, PM Modi said that the government will give big Diwali gift to people in the form of GST rate cut.

The GST rate cut and the subsequent decline in cars price would significantly boost demand and consumption. " Lower GST rates on automobiles, electronics, and appliances not only make these products more affordable but also expand the addressable market to include price-sensitive consumers who were previously priced out. Banks could see an increase in auto loans, personal loans for electronics purchases. According to Crif high mark, in FY25, originations included Rs 10.7 lakh crore of home loans, Rs 4.7 lakh crore of auto loans incl. two-wheelers and Rs 1.6 lakh crore of consumer durables," noted Sanjay Agarwal, Senior Director, CareEdge Ratings.