- By Kanika Sachdeva
- Fri, 05 Sep 2025 07:04 PM (IST)
- Source:JND
GST Council Meet: Thanks to the transition to a broad two-slab structure of 5 and 18 per cent starting September 2022, popular sub-4-metre cars/SUVs will see a significant price drop. This is because petrol cars with up to 1,200cc and diesel cars with up to 1,500cc engines will be taxed at 18 per cent (from 28 per cent under the existing four-slab structure) under the new structure, benefitting the common man and major OEMs (Original Equipment Manufacturers) alike; however, bigger cars will attract a 40 per cent tax (from 45-50%), although the GST rate on electric versions will remain the same at 5 per cent.
Nexon, XUV 3XO: Here's How Much You Can Save
For your information, cess has also been eliminated, making the tax calculation on cars simpler. Let's get to the breakdown of the savings on the following sub-4m models listed below:
| Sub-4m Cars/SUVs | Current Ex-Showroom Price | Current GST Rate + Cess | GST Rate-to-be + Zero Cess | Predicted Ex-Showroom Price | Potential Savings |
| Tata Nexon Petrol | Rs 8-Rs 14.70 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 7.32-Rs 13.44 | Rs 68,000-Rs 1.26 lakh |
| Tata Nexon Diesel | Rs 10-Rs 15.60 lakh | 31% (28% GST + 3% Cess) | 18% | Rs 9.01-Rs 14.05 lakh | Rs 99,000-Rs 1.55 lakh |
| Tata Tiago | Rs 5-Rs 8.55 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 4.45-Rs 7.61 lakh | Rs 55,000-Rs 94,000 |
| Mahindra XUV 3XO Petrol | Rs 7.99-Rs 15.80 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 7.31-Rs 14.45 lakh | Rs 68,000-Rs 1.35 lakh |
| Mahindra XUV 3XO Diesel | Rs 9.99-Rs 14.99 lakh | 31% (28% GST + 3% Cess) | 18% | Rs 9-Rs 13.50 lakh | Rs 99,000-Rs 1.49 lakh |
| Hyundai i20 | Rs 7.51-Rs 11.25 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 6.68-Rs 10.01 lakh | Rs 83,000-Rs 1.24 lakh |
| Hyundai i20 N Line | Rs 9.99-Rs 12.56 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 8.89-Rs 11.18 lakh | Rs 1.10-Rs 1.38 lakh |
| Maruti Suzuki Swift | Rs 6.49-Rs 9.65 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 5.78-Rs 8.59 lakh | Rs 71,000-Rs 1.06 lakh |
| Maruti Suzuki Wagon R | Rs 5.79-Rs 7.62 lakh | 29% (28% GST + 1% Cess) | 18% | Rs 5.15-Rs 6.78 lakh | Rs 64,000-Rs 84,000 |
Also Read: Tesla Model Y Deliveries Begin, First Unit Handed Over to Maharashtra Transport Minister: Watch
Diesel Versions To Get Max. Benefit
As can be discerned, prospective buyers of the diesel versions of the bestselling Tata Nexon and the Mahindra XUV 3XO will benefit the most from price drops. Among the hatchbacks, the Hyundai i20 N Line will see the maximum price cut.
All abovementioned prices are just estimates and subject to change. Actual savings may differ after finalised prices are out. Also note that all cars/SUVs mentioned fall under the sub-4-metre category and come powered by their respective (below 1,200cc) petrol and (under 1,500cc) diesel engines.
