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Tata Motors Announces Price Cuts of Up to Rs 1.55 Lakh After GST Overhaul

The Tata Tiago hatchback is now affordable by up to Rs 75,000, while the Tigor sedan sees a reduction of up to Rs 80,000.

By Sanorita

8 Sep, 2025

2 min read

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Several carmakers across India have announced that they will fully pass on the benefits of the upcoming GST 2.0 revision to customers, starting September 22, 2025 (the day the new tax structure takes effect). Tata Motors has also joined the list, confirming price reductions of up to Rs 1.55 lakh, depending on the model. The reformed GST regime introduces a more streamlined and buyer-friendly taxation system across different vehicle categories. For small cars, the tax rate has been lowered to 18%, compared to the earlier 29–31% inclusive of cess. Meanwhile, the SUVs and premium vehicles now attract a single 40% tax rate, replacing the earlier combination of 28% GST and a cess of up to 22%, ultimately easing the overall tax load. On the other hand, electric vehicles retain their favourable 5% GST. Here's how much less you'll pay for Tata Cars after the GST cut. 

Tata Motors Cars Price Reductions

The Tata range has seen notable price reductions, making cars and SUVs more affordable than before. The Tiago is now cheaper by up to Rs 75,000, while the Tigor sees a reduction of up to Rs 80,000. Buyers of the Altroz can benefit from savings worth up to Rs 1.10 lakh. Meanwhile, the Punch comes with a price drop of up to Rs 85,000.

Also Read: Tata Punch EV Long-Range Now Charges 10–80% in 40 Mins, Gets Two New Colour Options

The Tata Nexon has seen the maximum price reduction of up to Rs 1.55 lakh. The Curvv SUV Coupe is now up to Rs 65,000 more affordable. The Harrier and Safari SUVs have seen significant price drops of Rs 1.40 lakh, and Rs 1.45 lakh, respectively. 

Other Highlights

Tata Motors has made its comeback in South Africa after nearly six years, following its exit in 2019. It has teamed up with Motus Holdings Ltd., a prominent distributor in South Africa, and launched four models in the region (Punch, Harrier, Curvv, and Tiago).

Also Read: Tata Harrier And Safari Adventure X Variants Launched; Prices Start at Rs 18.99 Lakh

The partnership with Motus Holdings enables the company to have immediate access to an extensive and trusted dealership network in South Africa, along with strong after-sales service and a customer-first sales approach. Initially, Tata Motors Passenger Vehicles (TMPV) will have a network of 40 dealerships. The company plans to expand this network to 60 outlets by 2026. 

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