Kia India announced price reductions of up to ₹4.48 lakh across its internal combustion engine portfolio, with the Carnival MPV receiving the highest benefit. The Sonet compact SUV will become cheaper by up to ₹1.64 lakh, while the Syros will see a reduction of up to ₹1.86 lakh. Other models including the Seltos, Carens, and Carens Clavis will benefit from cuts ranging from ₹48,513 to ₹78,674.
Toyota Kirloskar Motor followed suit with price reductions across its lineup, with the Fortuner seeing the steepest cut of ₹3.49 lakh. The Innova Crysta and Hycross will be cheaper by up to ₹1.80 lakh and ₹1.15 lakh respectively, while the luxury Vellfire will see a reduction of ₹2.78 lakh. Popular models like the Urban Cruiser Hyryder and Glanza will also benefit from substantial price cuts.
The GST Council’s decision to rationalize automotive taxes represents a fundamental shift from the previous structure. Small cars with engines up to 1,200cc for petrol and 1,500cc for diesel, measuring under four meters in length, now attract 18% GST instead of the earlier 28%. Larger vehicles will be taxed at a flat 40% rate, eliminating the previous cess structure that could push total taxation to 50%.
“The reduction in GST on passenger vehicles is a progressive and timely decision that will make personal mobility more accessible for millions across India,” said Tata Motors Managing Director Shailesh Chandra. The reform aims to boost demand ahead of the festive season while making vehicles more affordable for consumers.
Auto stocks surged on September 8, with the Nifty Auto index climbing 3.3% to lead sectoral gains. Tata Motors topped the Nifty 50 gainers list with a 4.25% jump, followed by Bajaj Auto at 4.08% and Mahindra & Mahindra M&M at 4.01%. The broader market sentiment was buoyed by expectations of increased vehicle demand during the upcoming festive season.
Bank of America has raised price targets across the auto sector, lifting Maruti Suzuki to ₹17,000 and M&M to ₹4,000, both maintaining ‘buy’ ratings. The coordinated price cuts by manufacturers are expected to trigger a volume-driven upcycle in the passenger vehicle industry, with analysts projecting potential volume growth of 8-10%.
The reforms come at a strategic time as automakers prepare for the festive season, traditionally a period of strong vehicle sales in India. With manufacturers passing on the full GST benefits to consumers, the move is expected to accelerate demand and strengthen the sector’s performance heading into 2026.
