Hyundai Rolls Out Major GST Price Cuts: Cars And SUVs Upto Rs. 2.4 Lakh Cheaper

Hyundai Motor India has revised prices across its entire portfolio following the implementation of GST 2.0. From September 22, 2025, buyers will see reductions ranging from ₹60,640 on the Verna to as much as ₹2.40 lakh on the premium Tucson. The changes affect all 12 models in Hyundai’s lineup and come just in time for the festive season.

Savings Across Segments

At the entry level, the Grand i10 Nios hatchback is now ₹73,808 cheaper, while the Aura compact sedan drops by ₹78,465. The Exter micro SUV, Hyundai’s recent launch in the small crossover space, receives a reduction of ₹89,209.

The i20 premium hatchback is down by ₹98,053, with its performance-oriented N Line variant cut by ₹1.08 lakh. The Venue compact SUV, one of Hyundai’s biggest sellers, sees a ₹1.23 lakh price drop, while the Venue N Line follows with ₹1.19 lakh.

Among sedans, the Verna records the smallest reduction at ₹60,640. The Creta, Hyundai’s bestselling SUV, has been reduced by ₹72,145, while the Creta N Line is cheaper by ₹71,762. The Alcazar three-row SUV is now priced lower by ₹75,376.

The largest cut comes at the top of the range. The Tucson premium SUV carries a reduction of ₹2.40 lakh, reflecting the higher tax savings under the revised system.

How GST 2.0 Changed Pricing

Under the earlier tax structure, cars attracted 28 percent GST plus compensation cess, which varied between 1 and 22 percent depending on size, engine capacity and fuel type. This meant total taxation could run from 29 percent to as high as 50 percent.

The new GST 2.0 framework simplifies this into three clear brackets. Small cars under four metres with petrol engines up to 1200cc or diesel engines up to 1500cc now fall under 18 percent GST. Larger vehicles, including most SUVs and premium models, face a flat 40 percent GST with no additional cess.

While 40 percent appears higher than 28 percent, the removal of cess reduces the overall burden. Vehicles previously taxed at close to 50 percent now see a 10 percent drop in effective rates.

This restructuring directly explains the scale of Hyundai’s revisions. Models like the Grand i10 Nios, i20 and Venue benefit from the lower 18 percent bracket, while larger models like the Creta, Alcazar and Tucson gain from the new 40 percent slab that eliminates the cess.

Festive Timing and Buyer Impact

The cuts have been timed with Navratri, when car sales traditionally peak. By rolling out reductions from September 22, Hyundai ensures its showrooms are aligned with seasonal buying sentiment.

For buyers, the benefit is clear: popular models such as the Venue and Creta are now more affordable, while premium products like the Tucson offer significant absolute savings. The simplified tax structure also makes final pricing easier to understand, reducing the confusion that often surrounds on-road costs.

Market Implications

Hyundai’s decision to pass the full benefit to customers strengthens its competitive position. In categories like compact SUVs and premium hatchbacks, where rivals such as Tata, Maruti and Kia compete head-to-head, sharper pricing adds weight to Hyundai’s offerings.

The strategy may squeeze margins per car, but higher volumes during the festive period could offset the impact. Dealers also gain a strong selling point in customer conversations, with transparent reductions across the range.