Tata's New Prices After GST Changes: New Lower Prices List

Written By: Shatrughan Jha
Published: September 6, 2025 at 10:49 AMUpdated: Updated: September 6, 2025 at 10:49 AM
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Big Reductions Across the Lineup

Tata Motors has confirmed that it will pass on the full benefit of the government’s GST 2.0 reforms to buyers, cutting prices across its passenger vehicle portfolio from September 22, 2025. The decision means customers can expect savings of up to Rs 1.55 lakh, depending on the model.

tata tiago colours flame red

At the entry level, the Tiago hatchback will be cheaper by Rs 75,000 and the Tigor compact sedan by Rs 80,000. The Altroz premium hatchback gets the steepest reduction among small cars, at Rs 1.10 lakh.

tata punch micro suv

In the compact SUV space, the Punch will see prices fall by Rs 85,000, while the Nexon offers the largest cut of all Tata models at Rs 1.55 lakh. The recently launched Curvv midsize SUV will also become more affordable with a Rs 65,000 reduction.

Tata’s premium SUVs will also benefit. The Harrier will be cheaper by Rs 1.40 lakh and the Safari by Rs 1.45 lakh. These cuts arrive at a time when Tata has been working to strengthen its position in the premium segment.

Nameplate Reduction in Price (Rs.)

Tiago up to 75,000/-

Tigor up to 80,000/-

Altroz up to 1,10,000/-

Punch up to 85,000/-

Nexon up to 1,55,000/-

Curvv up to 65,000/-

Harrier up to 1,40,000/-

Safari up to 1,45,000/-

Why Prices Are Falling

The reductions follow the 56th GST Council meeting on September 3, 2025, where a new two-slab tax structure for automobiles was introduced. Until now, small cars attracted 28 percent GST plus additional compensation cess, depending on size and engine type. Under the revised rules, vehicles with petrol engines under 1,200cc, diesel engines up to 1,500cc, and overall length under 4,000mm will now attract a flat 18 percent GST with no cess.

india's new gst slabs explained

For larger models such as the Harrier and Safari, the cess that ranged from 15 to 22 percent has been scrapped. These vehicles will now fall under a single 40 percent GST slab. Even with the higher flat rate, the absence of cess translates into a net reduction in effective taxation. The new structure simplifies pricing, makes taxation more transparent, and gives manufacturers scope to adjust prices more cleanly.

Festive Timing to Boost Demand

tata harrier diesel

The changes take effect from September 22, coinciding with the start of Navaratri, which traditionally marks the beginning of the festive car-buying season. Tata Motors has said the announcement is aimed at making personal mobility more accessible, while also encouraging customers to book early if they want timely deliveries during the festival period.

With demand expected to spike, dealers are preparing for increased bookings. For Tata, the cuts arrive at an opportune moment as the wider auto industry has been grappling with flat sales in recent months. The price relief is expected to act as a stimulus, particularly in the entry-level segment where cost remains a key factor in purchase decisions.

Wider Implications for the Industry

The GST reform is not just about finished vehicle prices. Auto parts will also now attract a uniform 18 percent GST, down from 28 percent for many components earlier. If manufacturers pass on this saving, it could further lower production costs and widen the benefit to customers.

Additionally, since road tax and registration fees are calculated on ex-showroom prices, buyers will save more when factoring in reduced RTO charges. This cascading effect means the actual on-road savings could exceed the official reductions announced by Tata.

Competitively, Tata’s move puts pressure on rivals. Mahindra has already announced cuts on its SUV lineup earlier in September, and other automakers are expected to follow suit quickly to avoid losing ground. Tata’s detailed, model-wise price reductions also offer clarity for buyers, compared to competitors who have so far made only broad announcements.

What This Means for Buyers

tata nexon suv

For customers eyeing Tata’s compact SUVs, the Nexon now becomes even stronger value with a Rs 1.55 lakh saving. Premium buyers will find the Harrier and Safari more attractive against rivals, while entry-level buyers gain more accessible options in the Tiago, Tigor, and Punch.

The GST 2.0 reform and Tata’s response mark one of the biggest structural changes in car pricing in recent years. With the company passing on the full tax benefit, the cuts are expected to expand the market, stimulate demand, and give Tata an edge as the festive season begins.