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Auto retail sales in India maintained healthy momentum in December 2025, with industry players projecting the positive trend to continue into the final quarter of the fiscal year. Wholesale numbers for December 2025 are expected to show double-digit growth across most major manufacturers.
Renault India on Saturday (September 6, 2025) said it will reduce prices of its vehicles by up to ₹96,395 to pass on full benefit of the recent GST rate cut to buyers.
Automobile dealers could face significant financial losses as the government clarifies that compensation cess credits cannot be transitioned or refunded under the current GST law.
Major automakers including Tata Motors, Mahindra & Mahindra, and Renault India have announced price cuts across their passenger vehicle portfolios after the Goods and Services Tax (GST) Council slashed rates on cars and auto components earlier this week.
In order to pass on the GST rate cut, Mahindra & Mahindra on Saturday announced a price reduction of up to Rs 1.56 lakh on sports utility vehicles (SUVs) like Scorpio, XUV700, Thar and Bolero.
It isn’t just small cars and two-wheelers, large sedan and SUVs too are likely to see a sharp reduction in prices as goods and services tax (GST) is expected to come down from the current, up to 50% , to proposed 40%, the slab for luxury and sin goods.
A LinkedIn post by CA Arvind C Thomas is gaining traction for revealing how buying a new car in India can come with nearly Rs 6 lakh in taxes, making what should be a middle-class purchase a significant financial burden.
The proposed revision of the Goods and Services Tax (GST) slabs structure may not raise the weighted average levy, but is likely to keep the tax incidence on “demerit and luxury goods” at roughly the currently levels.
CBIC issued Notification no. 04/2025-Central Tax (Rate) dated 16.01.2025. It seeks to amend the Notification No. 08/2018 CTR dated 25.01.2018 and thereby increase the GST rate to 18% at serial no. 4 “All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3”.
The GST council has recommended an increased 18% GST rate on the margin value of used car sales for specified petrol vehicles with 1200 cc or more, diesel vehicles with 1500 cc or more, and all EVs. The GST council also did not specify any new reverse charge liability or liability to tax on vehicles sold by unregistered sellers to registered or unregistered persons. If the seller is non GST registered then this above ruling does not apply.