Why SUVs Just Got a Huge Price Cut—but Not Every Ride Is Lucky

Ever wished your car dealer said,

“Sir, gaadi sasti ho gayi hai”

instead of

“Waiting period hai, sir”?

Well, thanks to the new GST 2.0 reform, that dream just came true—for most buyers, at least.

Yes, car and bike prices in India are dropping big time—but with one strange twist: while hatchbacks and SUVs are celebrating, some bikers just got the short end of the tax stick. Curious?

Let’s decode this:

GST 2.0: The Tax Diet Plan for Vehicles

India has put vehicles on a new “tax diet”: just three slabs—5%, 18%, and 40%.

* Here’s what changed:

* Sub-4 Meter Cars → From 29–31% ➝ 18%

* SUVs & Big Cars → Flat 40% (down from 43–50%)

* Bikes ≤ 350cc → From 28% ➝ 18%

* Bikes > 350cc → From 31% ➝ 40% (ouch, bikers!)

* EVs → Still a sweet 5%

Sub-4 Meter Cars: The Real Winners

If you were eyeing a Swift, Alto, Baleno, Tata Punch, Venue, Sonet, or XUV 3XO, GST 2.0 just saved you anywhere between 1 to 1.5 lakh rupees.

Translation: That’s free insurance, accessories, and maybe even a year’s worth of petrol (oh wait, fuel’s still not under GST).

SUVs & Luxury Cars: Still Flexing, Just Cheaper

India’s favorite toy—the SUV—just got a “discount tag.”

Creta, Seltos, Kushaq, Hyryder → Savings of over 1 lakh

XUV700, Tata Safari → Cheaper by around 2 lakh

Fortuner → A jaw-dropping 5–6 lakh off

Even German heavyweights like Mercedes, BMW, and Audi will now pinch your pocket slightly less.

This is where GST 2.0 pulls a plot twist:

Good News: Splendor, Pulsar, and even the Royal Enfield Classic 350 are cheaper now (18% tax).

Bad News: Superbikes, RE Twins, Kawasaki, Harley—welcome to the 40% tax club.

Moral of the story?

If your bike sounds like thunder, your wallet now cries like rain.

Other Vehicles & Servicing

• Three-wheelers, trucks, buses → cheaper (18%).

• Car service & spare parts → cheaper (18% flat).

• EVs → unchanged (5%), still the government’s favorite child.

So yes, even your mechanic bill might finally stop giving you a mini heart attack.

But Petrol? Still Untouched

The big disappointment: petrol and diesel remain under VAT. No GST love here.

So while your new WagonR is cheaper, filling its tank still feels like sponsoring a cricket match.

What Experts Are Saying

Auto companies are calling this a “festival bumper offer.”

Analysts predict a 10% jump in small car sales and 6–8% growth overall.

Mahindra & Mahindra shares jumped 8% the moment this reform hit the news.

GST 2.0 is basically the Big Billion Days for cars.

• Small cars? Cheapest in years.

• SUVs? Still ruling, but friendlier on your wallet.

• Superbikes? Sorry bro, government says “no free revving.”

• EVs? Still the golden child.

So, the only real question is:

Will you book your ride this Navratri, or wait till your neighbor flexes his discounted Creta?