Maruti Suzuki car prices drop up to ₹1.29 lakh after GST cut from Sept 22 — Check Swift, Alto K10 rates

Maruti Suzuki, India's leading car manufacturer, has declared its intention to pass on the benefits of the revised GST rates to its customers. This move will make Maruti Suzuki cars more affordable starting Monday, 22 September 2025. The decision comes just in time for the festive season, a crucial period for car sales in India.

The GST Council, led by Nirmala Sitharaman, announced a reduction in GST for small cars during its 56th meeting on 3 September 2025. The tax rate for these vehicles will drop from 28% plus a 1% Cess to a flat 18%. This change is expected to boost sales in the sub-four metre car segment.

Impact on Maruti Suzuki Models

Maruti Suzuki's lineup will see significant price reductions due to the new GST rates. The S-Presso will now be available at a starting price of ₹3,49,900 after a reduction of up to ₹1,29,600. Similarly, the Alto K-10's price will decrease by up to ₹1,07,600, with prices beginning at ₹3,69,900.

The Celerio model will also become more affordable with a price cut of up to ₹94,100. It will be sold at a starting price of ₹4,69,900. Meanwhile, the Wagon-R's cost will drop by up to ₹79,600 and will be available from ₹4,98,900.

Other models like the Ignis and Swift are also set for reductions. The Ignis will see a decrease of up to ₹71,300 and start at ₹5,35,100. The Swift's price will fall by up to ₹84,600 with an initial price tag of ₹5,78,900.

Broader Implications of GST Changes

The GST changes extend beyond small cars. Vehicles with engines over 1,500cc and longer than four metres will now face a flat GST rate of 40%, down from the previous combined rate of 50%. This includes SUVs and MPVs which previously attracted higher taxes.

Kotak Institutional Equities reports that larger vehicles are also benefiting from reduced indirect taxes. The overall tax burden on these vehicles has decreased from a cumulative 50% to the new rate of 40%, making them more accessible to consumers.

The Baleno model is another beneficiary of these changes. Its price is set to drop by up to ₹86,100 with sales starting at ₹5,98,900. Additionally, the Tour S model will experience a reduction of up to ₹67,200 and be offered at an initial price of ₹6,23,800.

These adjustments in GST rates are part of broader efforts by the government to stimulate growth in the automotive sector. By making cars more affordable across various segments, it aims to encourage consumer spending and support economic recovery.