Bajaj Auto, JLR, Honda Cars, among others, announce price cuts following GST rationalisation; Check details

Automakers have been announcing price cuts and passing the full benefit of the recent goods and services tax (GST) rate cut to customers, following the GST rejig introduced by the government last week.

GST rates for smaller cars, with an engine capacity of 1200 cc and below 4000 mm, were reduced to 18% from 28%. Meanwhile, luxury cars or SUVs, which are 1200 cc (petrol), 1500 cc (diesel), and 4000 mm, will continue to attract a flat GST rate of 40%, which is effectively less than the 50% earlier, including 28% GST and 22% cess.

For two-wheelers, bikes above 350 cc will continue to attract higher GST rates, and bikes below 350 cc will attract 18% GST, down from 28%.

Bajaj Auto

Bajaj Auto on Tuesday announced that it would fully pass on the recent GST reduction to customers, offering ₹20,000 on two-wheelers and KTM motorcycles, and up to ₹24,000 on the three-wheeler range, effective September 22.

Commenting on the price cut, Rakesh Sharma, Executive of Bajaj Auto, said: "Two- and three-wheeler mobility is the backbone of livelihoods and fulfils many family aspirations. At Bajaj Auto Ltd, we are delighted to support the initiative, making our vehicles more affordable just as the festive season begins."

Yamaha Motor

Two-wheeler maker India Yamaha Motor Pvt Ltd announced a price cut of up to ₹17,581 across models to pass on the benefits of the GST rate reduction.

The company will extend the complete benefit of the recent GST revision on two-wheelers to its customers, effective September 22, 2025, when the revised rates come into effect, India Yamaha Motor (IYM) said in a statement.

Under the revised prices, the R15 model will cost ₹1,94,439, down from ₹2,12,020 currently. On the other hand, the price of the RayZR model will be reduced by ₹7,759 to ₹86,001 from ₹93,760 currently.

Welcoming the reduction in GST rates, Yamaha Motor India Group Chairman Itaru Otani commented, “We would like to thank the Government of India for the timely reduction in GST on two-wheelers. This step will provide a strong boost to the two-wheeler demand during the festive season.”

By making two-wheelers more affordable, he said, it will not only benefit customers directly but also stimulate overall consumption and create positive momentum for the industry.

Jaguar Land Rover

Jaguar Land Rover (JLR) said it will cut vehicle prices ranging between ₹4.5 lakh and ₹30.4 lakh, with immediate effect (September 9), to pass on the GST rate cut benefit to customers.

Customers will see price benefits in the range of ₹4.5 lakh to ₹30.4 lakhs across the entire portfolio of Range Rover, Defender, and Discovery brands, it said in a statement.

Volvo Car India

In a separate statement, Volvo Car India said it will cut vehicle prices by up to ₹6.9 lakh on its ICE portfolio, effective September 22.

Honda Cars

Honda Cars India announced a price cut on vehicle prices by up to ₹95,500 to pass on the GST rate cut benefit to customers.

The company said it will reduce prices of compact sedan Amaze by up to ₹95,500, City by ₹57,500, and Elevate by ₹58,400 with effect from September 22.

Jeep India

In a separate statement, Jeep India said that with the rationalisation of GST slabs, ex-showroom prices across the portfolio, including Compass, Meridian, Wrangler, and Grand Cherokee, will see substantial reductions ranging from ₹1.26 lakh to nearly ₹4.8 lakh, depending on the model and variant.

The new pricing structure will be effective across all Jeep dealerships nationwide from September 22, 2025, aligning with the implementation of the revised GST rates, it added.

TVS Motor Company