GST 2.0: MG Motor India Slashes SUV Prices by Up to ₹3.04 Lakh

The launch of GST 2.0 by the Union government has triggered one of the most significant price corrections in India’s passenger vehicle market. MG Motor India has joined this trend by cutting prices across its internal combustion engine (ICE) SUV portfolio Astor, Hector, and Gloster passing on the entire tax reduction to customers. The revised pricing became effective from September 7, 2025, and aims to boost consumer sentiment ahead of the festive season.

GST 2.0: What Has Changed?

GST 2.0 simplifies India’s automobile taxation structure. Earlier, SUVs attracted multiple slabs with combined GST + cess as high as 50 percent, particularly for large luxury vehicles. With GST 2.0, the maximum rate has now been capped at 40 percent, eliminating the previous 50 percent slab.

This structural change has resulted in substantial ex-showroom price cuts, with benefits directly transferred to customers across different automakers. MG Motor India has gone a step further by offering additional financing flexibility.

Short Summary Table

Official site: MG Motor India

MG Motor India Price Reductions

MG Astor

• Previous tax rate: 45%

• New tax rate: 40%

• Price reduction: Up to ₹54,000

The Astor, MG’s entry-level SUV, now falls under the lower tax bracket, making it more accessible to first-time and mid-segment buyers.

MG Hector (Petrol and Diesel)

• Previous tax rate: 45% (Petrol), 50% (Diesel)

• New tax rate: 40% (all variants)

• Price reduction: Up to ₹1.49 lakh

The Hector, one of MG’s bestsellers, gets significant relief across both fuel options, enhancing its appeal against competitors in the compact and mid-size SUV categories.

MG Gloster (Flagship SUV)

• Previous tax rate: 50%

• New tax rate: 40%

• Price reduction: Up to ₹3.04 lakh

As MG’s flagship SUV, the Gloster benefitted the most. With GST rationalization, the luxury tax slab was abolished, bringing this model under the new 40 percent category.

Additional Customer Benefits

In addition to lowering sticker prices, MG Motor India has announced financing options to improve affordability:

• 100% on-road financing for buyers who prefer a no-down-payment model.

• Three-month EMI holiday, giving new owners flexibility before beginning repayment.

These offers, timed with the festive season, aim to attract higher footfall and accelerate sales.

The Larger Industry Impact

MG Motor is not the only automaker responding to GST 2.0. Many other companies have announced price cuts across their line-ups:

• Mahindra reduced prices by up to ₹1.56 lakh on SUVs like the XUV700, Thar, and Scorpio.

• Tata Motors announced reductions of around ₹1.45 lakh on multiple passenger vehicles.

• Hyundai, Toyota, Renault, Nissan, and Skoda also implemented similar cuts.

• Luxury brands such as BMW, Mercedes-Benz, and Audi slashed prices by several lakhs, with some reductions exceeding ₹10 lakh on high-end models.

This widespread reduction highlights how GST 2.0 is reshaping affordability across the entire automotive sector, making both mass-market and premium vehicles more accessible.

Electric Vehicles Remain Unchanged

While ICE models have seen major benefits, electric vehicles (EVs) remain unaffected. EVs were already taxed at a flat 5 percent GST, and this has been retained under GST 2.0. For MG Motor, this means its electric models Comet EV and Windsor EV, along with luxury EVs sold via MG Select showrooms such as the Cyberster and M9continue at their existing price levels.

FAQs

1. From when are the new MG prices applicable?

A. All new prices are effective from September 7, 2025.

2. Do these cuts apply to both petrol and diesel variants?

A. Yes, both fuel types for the Hector and other ICE models benefit from the revised GST structure.

3. What happens to MG’s EV range?

A. No change EVs continue under the 5% GST category, keeping their prices unchanged.

4. What additional benefits is MG offering?

A. MG is providing 100% on-road financing and a three-month EMI holiday for added affordability.

5. How does this compare to other brands?

A. Other automakers including Mahindra, Tata, Hyundai, and even luxury brands like Mercedes-Benz have also passed GST 2.0 benefits to customers with similar price cuts.

6. Why does the Gloster see the biggest cut?

A. Because it was previously in the 50% tax slab for luxury SUVs, which has now been reduced to 40%.

7. Will on-road prices reduce proportionally?

A. Yes, lower ex-showroom prices also reduce RTO charges and insurance costs, further cutting overall ownership cost.

For More Information Click HERE