Tata Motors is reducing prices across its car and SUV portfolio by up to ₹1.55 lakh, effective September 22, 2025, to pass on the full benefit of the government’s GST 2.0 reforms to customers. This strategic move aims to boost sales during the upcoming festive season by making popular models like the Nexon, Harrier, and Safari more affordable, with smaller reductions also on entry-level vehicles such as the Tiago and Tigor.
Tata Motors Model-Wise Price Cuts Effective from 22 September 2025
| Model | Price Reduction (₹) |
|---|---|
| Tiago | Up to 75,000 |
| Tigor | Up to 80,000 |
| Altroz | Up to 110,000 |
| Punch | Up to 85,000 |
| Nexon | Up to 155,000 |
| Curvv | Up to 65,000 |
| Harrier | Up to 140,000 |
| Safari | Up to 145,000 |
GST Reforms and Tata Motors’ Offset Strategy
Tata Motors has confirmed it will pass on the full benefit of the recent GST reduction on passenger vehicles to customers. This will automatically lower prices across its range of cars and SUVs by ₹65,000 to ₹1.55 lakh effective 22 September 2025. The announcement aligns with the automaker’s “Customer First” approach and is strategically timed ahead of the festive season, known for heightened vehicle demand.
What’s Driving the Price Cuts?
The GST Council recently overhauled tax slabs for automobiles. Small petrol, CNG, or LPG vehicles under 1,200 cc and 4,000 mm in length will now bear 18% GST instead of 28%. Diesel cars up to 1,500 cc within the same size constraints also fall into the 18% bracket. Larger vehicles now face a flat 40% tax, replacing the earlier cumulative rate of up to 50%.
Model-by-Model Reduction Summary
- Tiago: Price cut of up to ₹75,000
- Tigor: Reduced by up to ₹80,000
- Altroz: Cuts up to ₹1.10 lakh
- Punch: Up to ₹85,000 discount
- Nexon: Makes its most popular model cheaper by ₹1.55 lakh
- Curvv: Reduction of up to ₹65,000
- Harrier: Lower by up to ₹1.40 lakh
- Safari: Cheaper by as much as ₹1.45 lakh
Strategic Timing and Market Implications
The rollout of these revisions coincides with Navratri and the festive buying season, traditionally a peak period for vehicle purchases. Lower prices are expected to prop up demand among first-time buyers and working professionals, making personal mobility more accessible. Industry experts anticipate an uptick in sales volume for Tata Motors during this period.
Why This Matters for Buyers
- Affordability: Significant savings on both entry-level models and premium SUVs improve affordability across income segments.
- Clarity: Rather than relying on dealer offers, the transparent GST-based reductions make pricing easier to track and assure value retention.
- Planning Edge: Buyers can lock in these prices before year-end GST changes or policy shifts.
- Industry Catalyst: As the first major OEM to pass on the entire GST benefit, Tata sets an example, prompting others to potentially follow suit.
What Buyers Should Do Next
- Confirm Model-Specific Pricing with local Tata showrooms after 22 September.
- Pre-book Early, especially for high-demand models like Nexon, to ensure delivery amid festive rush.
- Compare Effective Prices, factoring in regional on-road costs like insurance and registration.
- Also Explore EVs, as electric vehicles remain subject to a 5% GST rate—another potential area for savings.
MK Vats is the founder and owner of MotoElectra.com, a leading platform dedicated to cars, bikes, electric vehicles, and automotive technology. With a deep passion for vehicles and innovation, MK Vats has committed his career to sharing comprehensive reviews, latest news, and expert insights for automotive enthusiasts and potential buyers.
