Auto Sector

The Indian government has slashed the Goods and Services Tax (GST) on motorcycles and scooters with engine capacities up to 350cc from 28% to 18%, effective September 22, 2025. This move is expected to lower vehicle prices significantly, making two-wheelers more affordable for middle-class consumers and stimulating demand in the automotive sector. Leading manufacturers such as Honda, Hero MotoCorp, and Yamaha have announced price reductions of up to ₹18,887 on select models. The measure also aims to boost sales ahead of the festive season while supporting broader economic growth.

Hyundai has taken another decisive step in the electric mobility race with the unveiling of its latest prototype, the Concept Three, a compact electric car designed for city commuting. The model emphasizes sustainability, affordability, and cutting-edge technology, underscoring the automaker’s strategy to capture a wider consumer base in the growing electric vehicle (EV) segment.

The Goods and Services Tax (GST) regime continues to weigh heavily on the Indian two-wheeler industry, with motorcycles and scooters falling under the highest GST slab of 28%. Industry representatives argue that treating essential mobility vehicles on par with luxury goods undermines affordability for millions of consumers, particularly in rural and semi-urban areas where motorcycles remain a lifeline. Rising fuel prices and inflation have already dampened sales, and the additional tax burden has further constrained recovery.

India’s automobile retail sector reported steady growth in August, supported by early festive season purchases, improving rural demand, and sustained momentum in passenger vehicle sales. Two-wheelers, which had been under pressure for several quarters, showed signs of revival, while commercial vehicles maintained stable performance. The Federation of Automobile Dealers Associations (FADA) noted that positive monsoon progress, easing inflation, and renewed consumer sentiment contributed to the uptick. However, supply chain pressures and cautious financing trends remain areas of concern.

Maruti Suzuki has expanded its product portfolio with the launch of Victoris, a new sport utility vehicle (SUV) designed to capture growing demand in India’s most competitive automotive segment. Equipped with advanced safety systems, connected technology, and a modern powertrain, Victoris marks a significant step in the company’s strategy to consolidate its presence in the mid-size SUV category.

Tata Motors has announced a broad reduction in prices across its passenger vehicle portfolio, including cars and SUVs, in an effort to make its offerings more accessible to consumers. The move comes at a time when the automotive industry is navigating high input costs, subdued demand in certain segments, and intense competition. By revising prices downward, Tata Motors aims to consolidate its market position, stimulate sales momentum ahead of the festive season, and appeal to value-conscious buyers who have been deterred by rising vehicle ownership costs.

Skoda India is offering significant price reductions on its key models following the recent Goods and Services Tax (GST) cut, providing customers with savings of up to Rs. 5.8 lakh. The benefits apply across popular models including the Kushaq, Slavia, and Kodiaq, enhancing affordability and potentially boosting demand in both compact and premium segments. Coupled with additional manufacturer incentives and financing schemes, these reductions make Skoda’s offerings more competitive against rivals.

Maruti Suzuki has unveiled its much-anticipated Victori SUV, impressively equipping even the base LXi variant with a range of premium features. This strategic move positions the model as an accessible yet technologically advanced option in the highly competitive SUV segment, appealing to first-time buyers and value-conscious customers alike. By integrating modern conveniences, safety enhancements, and connectivity tools from the entry-level trim, Maruti aims to strengthen its market footprint, boost early adoption, and set a new benchmark for base-spec offerings.

The Indian automotive sector is witnessing immediate consumer benefits following the government’s recent Goods and Services Tax (GST) reduction. Automakers including Maruti Suzuki, Hyundai, Mahindra, Tata Motors, Toyota, Skoda, Renault, BMW, and Mercedes have revised their pricing structures, passing on the tax relief to buyers. The move is expected to stimulate demand in a segment that has faced pressure from rising input costs and slowing sales.

Tata Motors has announced a sweeping reduction in vehicle prices following the government’s latest Goods and Services Tax (GST) revision, signaling a potential boost for the domestic automobile market. The company confirmed that the price cuts will apply across its passenger vehicle portfolio, reflecting its strategy of passing on the full benefit of lower taxes to customers. The decision is expected to stimulate demand, particularly in entry-level and mid-range segments, while strengthening Tata Motors’ competitive edge in a price-sensitive market like India.