New Delhi, September 16, 2025 — Good news for SUV buyers. Popular compact SUVs in India have just become significantly cheaper after the GST 2.0 reform. Prices of leading models including Kia Sonet, Hyundai Venue, Mahindra XUV 3XO, Skoda Kylaq, Maruti Brezza, and Maruti Nexa Fronx have dropped by as much as ₹1.64 lakh, as automakers pass on the revised GST benefits to customers.
Why the Price Drop?
The government’s GST 2.0 structure, effective from 22 September 2025, redefined tax slabs for automobiles. Compact SUVs — vehicles under 4 metres in length or meeting specific engine capacity limits — now attract lower GST (18% compared to the earlier 28% plus cess). This tax relief has directly translated into reduced ex-showroom prices.
Top Compact SUVs Benefiting from GST 2.0
- Kia Sonet
- Receives one of the biggest cuts, with prices slashed by up to ₹1.64 lakh depending on variant.
- The diesel and turbo-petrol trims see the largest savings.
- Hyundai Venue
- Now cheaper by around ₹1.5 lakh across popular variants.
- Venue’s strong demand in the urban compact SUV market is expected to get a further boost.
- Mahindra XUV 3XO
- Diesel variants enjoy reductions of about ₹1.5–1.6 lakh.
- Makes the 3XO one of the most competitively priced models in its segment.
- Skoda Kylaq
- Recently launched in the compact SUV space, Kylaq trims are now ₹1.3–1.5 lakh cheaper.
- This gives Skoda’s new entrant a stronger foothold in the price-sensitive segment.
- Maruti Suzuki Brezza
- Petrol trims of Brezza are now down by ₹1.4–1.5 lakh, widening its appeal among families looking for an affordable SUV.
- Maruti Suzuki Nexa Fronx
- Fronx, a premium crossover SUV, has seen a cut of up to ₹1.3 lakh, making turbo variants more accessible.
Impact on Buyers
- Lower EMIs: With reduced ex-showroom prices, loans and EMIs will also fall, making ownership more affordable.
- Better trims within reach: Many buyers can now opt for higher variants with premium features without crossing budget.
- Fiercer competition: The compact SUV segment, already India’s fastest-growing, is set to become even more competitive with the narrowed price gap among rivals.
What Buyers Should Check
- Variant Eligibility: The GST 2.0 cut applies to specific trims. Larger engines or longer body lengths may still attract higher taxes.
- City Variations: On-road prices will differ across states due to registration, insurance, and road taxes.
- Dealer Offers: Alongside GST benefits, festive season promotions from automakers and banks could further sweeten deals.
Industry Outlook
Analysts believe the GST 2.0 tax reform will stimulate demand in the compact SUV category, which accounts for a major share of India’s passenger vehicle sales. With savings up to ₹1.64 lakh, automakers like Hyundai, Kia, Maruti, Mahindra, and Skoda are expected to see a surge in bookings ahead of the festive season.
