GST rate reduction floats the largest price fall in Maruti Suzuki; S-Presso, Alto Lead with steep cuts

The largest car manufacturer Maruti Suzuki of the country said on Thursday that it will pass on the full advantage of the recent reduction of the GST rates on cars to customers by lowering vehicle prices in the portfolio.

The price reductions – which vary from RS 46,000 on MPV Vertiga to RS 129,000 on Small Hatch S -Presso – include both the advantage of lower GST rates and extra price stimulans that are extended by the company to stimulate the sale of car sales on the local market.

Partho Banerjee, Senior Executive Officer (Marketing and Sales) at Maruti Suzuki said that the company has reduced the prices for small cars above the net advantage of 8.5% because of the lower GST to help upgrade two -wheelers to cars. On the S-Presso, the total benefit extended by the company would vary from 12.6-24%, on Alto K10 of 10.6-20%, Celerio of 8.6-17%and Wagonr of 8.7-14%.

“We are convinced that the sale of small cars had fallen as a result of affordability issues. Now there are various steel wind wounds because of lower GST, income taxes announced earlier this year in the budget and lower interest rates. Our engineering and production team worked hard, and the benefits of the Breiden Bonds are also out of tongs in tongs in the Braiden Bonds. Accelerate the collapse of the input segment.

Banerjee added because the car penetration in India is “so low, with 34 per 1,000 people, it makes it all the more forced reason that, as the market leader, we take this initiative to put India on wheels.” With these measures, Maruti Suzuki expects the sale of passenger vehicles back to the earlier CAGR of 6-7% from next financial year.

The price reductions come at a time when the sale of passenger vehicles fell for the fourth consecutive month – by 8.8% in August – in the midst of slow demand and car -Majors calibrating shipments for the tax reset on the local market. Banerjee said that reduced vehicle prices at the entry level have a sharp decrease in profit in recent years. “The company will also pass on the GST rate rate benefit to car components that are used in service and maintenance to reduce the total total ownership costs,” Banerjee noted. Maruti Suzuki will compensate for his channel partners for the “Strategic Pricing” initiative, said Banerjee.

The revised prices come into effect from September 22, 2025, in accordance with the updated GST regulations, which coincide with the second stage of the festive season. At Maruti Suzuki, entry wagons such as the S-Presso and Alto K10 will see the steepest cuts, with reductions up to RS 1.29 LAKH and RS 1.07 Lakh, respectively. SUVs such as Fronx and Brezza have also seen a reduction to RS 1.12 LAKH.

The government has revised GST rates for passenger cars of September 22, 2025. The load has been reduced to 18% for small cars of less than 4 meters in length of 29-31% (GST and CESS). Larger cars and SUVs will attract a special GST percentage of 40%, compared to the current percentage of 43-50%.

Shares of Maruti Suzuki closed on RS 15,802 each, an increase of 0.01% on BSE.