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Tata Motors on Friday announced a sharp price cut across its passenger vehicle range, passing on the full benefit of the Goods and Services Tax (GST) reduction to customers. The revised prices, effective September 22, will lower costs by ₹65,000 to ₹1.45 lakh, making several popular models more affordable.

Big Savings Across Models

The company said its hatchbacks and sedans would see significant price drops. The Tiago will now cost ₹75,000 less, the Tigor ₹80,000, and the Altroz ₹1.10 lakh, reported PTI. 

Compact SUVs will also become more affordable, with the Punch seeing a ₹85,000 cut and the Nexon the highest reduction at ₹1.45 lakh. The upcoming mid-sized Curvv will be cheaper by ₹65,000, while the Harrier and Safari SUVs will see price drops of ₹1.4 lakh and ₹1.45 lakh, respectively.

Industry Backing for GST Reform

Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said the company would “fully honour the intent and spirit” of the reform by passing on the entire benefit of the GST reduction.

He called the move “a progressive and timely decision” that would improve access to personal mobility for millions of Indians. The cuts, he added, would particularly benefit first-time buyers while also accelerating India’s shift towards modern, sustainable mobility solutions.

GST Council’s Decision

The revised GST structure, effective from September 22, the first day of Navaratri, streamlines tax slabs to 5% and 18%.

Petrol, LPG, and CNG cars under 1,200 cc and less than 4,000 mm in length, and diesel cars up to 1,500 cc and 4,000 mm in length, will now attract an 18% rate.

Larger vehicles exceeding 1,200 cc (for petrol) or 1,500 cc (for diesel), and longer than 4,000 mm, will be taxed at a 40% levy.

The changes are expected to boost demand in India’s auto market, particularly in the compact and mid-sized car segments.