Big GST 2.0 Savings: 5 affordable car picks that can save Rs 1 lakh+ this festive season

Following the implementation of GST 2.0 from 22 September 2025, small cars (petrol engines ≤ 1200 cc & length ≤ 4 metres, diesel ≤ 1500 cc) now attract an 18 per cent GST rate, down from an earlier effective rate of around 29–31 per cent including cess, leading to a noticeable drop in prices for entry- and mid-segment vehicles.

Under the revised GST structure, larger vehicles and luxury SUVs are now taxed at a flat 40 per cent GST rate, simplifying the pricing and ensuring uniform taxation across premium segments.

Maruti Suzuki’s entry-level hatchback, the S-Presso, has become significantly more affordable, with prices dropping by up to Rs 1.3 lakh. Its starting ex-showroom price has fallen from Rs 4.3 lakh to Rs 3.5 lakh. The car comes with a 7-inch touchscreen, Android Auto and Apple CarPlay support, dual airbags, ABS, and a CNG option.

The Alto K10, one of Maruti’s most popular entry-segment cars, has seen a price cut of up to Rs 1.08 lakh, bringing its starting price down from Rs 4.78 lakh to Rs 3.7 lakh. It features a 7-inch infotainment system, six airbags, ABS, CNG option, and AMT automatic transmission.

Maruti Celerio’s prices have dropped by up to Rs 94,000, from Rs 5.64 lakh to Rs 4.7 lakh. The hatchback comes with a 7-inch infotainment system, six airbags, ESC, and petrol and CNG options, making it a safe and versatile choice for buyers.

Tata Motors’ Altroz has seen its starting price reduced from Rs 7.99 lakh to Rs 6.89 lakh, a drop of up to Rs 1.1 lakh. The premium hatchback offers a 10.25-inch touchscreen, digital driver’s display, sunroof, and wireless charger, and is available in petrol, diesel, and CNG variants.

Hyundai’s i20 premium hatchback has received a price cut of up to Rs 97,000, bringing the starting price down from Rs 7.84 lakh to Rs 6.87 lakh. Key features include a 10.25-inch touchscreen, Bose sound system, connected car technology, cruise control, and a sunroof.