New Delhi, September 2025 – Good news for SUV lovers! Popular models like the Hyundai Creta, Tata Harrier, and Toyota Fortuner have become more affordable in India. Thanks to the new GST 2.0 tax reforms, carmakers have reduced ex-showroom prices by up to ₹3.49 lakh, making SUVs more attractive for buyers ahead of the festive season.
Why are SUV prices dropping?
The government’s GST 2.0 reform simplified tax slabs on vehicles. Earlier, big SUVs attracted 28% GST + compensation cess, pushing their prices up. Under the new system, the cess has been reduced, and automakers are passing on these savings to customers.
Price cut details
| Model | Price Reduction | New Benefit |
|---|---|---|
| Toyota Fortuner | Up to ₹3.49 lakh | Biggest cut among SUVs |
| Toyota Legender | Up to ₹3.34 lakh | Premium SUV with massive savings |
| Tata Harrier | Around ₹1.40 lakh | Mid-segment SUV now more value for money |
| Hyundai Creta | Around ₹72,000 | Popular family SUV at a lower entry price |
What this means for buyers
- Bigger savings on large SUVs – Premium buyers benefit the most, especially with Fortuner and Legender.
- Festive season boost – Dealers expect higher demand as customers see this as the best time to upgrade.
- More competition in the SUV market – Hyundai, Tata, and Toyota will gain traction, forcing rivals to respond.
Expert Take
Auto analysts believe that this move will revive demand in the SUV segment. Larger SUVs will see more bookings, while mid-range models like the Creta and Harrier will attract first-time buyers who were earlier holding back due to high prices.
FAQs
Q1. Why did SUV prices drop in India?
SUV prices fell due to GST 2.0 reforms, which reduced the cess on vehicles. Carmakers passed the tax benefit to customers.
Q2. Which SUV got the biggest price cut?
The Toyota Fortuner witnessed the highest cut – up to ₹3.49 lakh.
Q3. Are the new prices effective immediately?
Yes, the revised prices are effective from September 22, 2025.
Q4. Do smaller SUVs like Brezza or Nexon also get price cuts?
Yes, but the benefit is smaller compared to big SUVs. The cuts vary depending on engine size and tax category.