Diwali 2025 Car Deals India: If you are planning to buy a new car this year, then it is important for you to know that the government has made a big change in the GST rules. Due to this change, buying a car after certain dates can prove to be more beneficial for you.
In such a situation, if your priority is direct savings in tax, then it would be better to buy a car after September 22. On the other hand, if you want to take advantage of offers and cashback, then it would be wise to shop around Diwali. First-time car buyers can take advantage of both and make a smart deal.
GST changes will be implemented from September 22
Before September 22, 2025, the total tax on small cars (up to 4 meters in length) was about 29% including 28% GST and 1% cess. But now the government has reduced these rates to just 18% and the cess has been completely abolished. This means that now there can be direct savings of 11% to 13% on petrol, CNG and diesel cars.
Diwali is coming after a few days. Car companies give huge discounts and offers around Diwali. These can include discounts up to ₹ 1 lakh, cashback, exchange bonus and free accessories. If the effect of GST reduction starts showing in the prices by Diwali, then the customer can get double benefit.
How much GST will be levied on which cars?
Diwali is coming after a few days. Car companies give huge discounts and offers around Diwali. These can include discounts up to ₹ 1 lakh, cashback, exchange bonus and free accessories. If the effect of GST reduction starts showing in the prices by Diwali, then the customer can get double benefit.
On which cars will GST be levied and how much?
| Name of the car | Category | New GST Rate (%) |
|---|---|---|
| Maruti Suzuki Swift | Ordinary car | 18% |
| Hyundai Grand i10 Nios | Ordinary car | 18% |
| Tata Tiago | Ordinary car | 18% |
| Renault Kwid | Ordinary car | 18% |
| Maruti Alto K10 | Ordinary car | 18% |
| Hyundai Exter | Ordinary car | 18% |
| Tata Punch | Ordinary car | 18% |
| Maruti WagonR | Ordinary car | 18% |
| Citroen C3 | Ordinary car | 18% |
| Nissan Magnite (some variants) | Ordinary car | 18% |
| Toyota Fortuner | Luxury Car | 40% |
| Mahindra XUV700Â (Top Variant) | Luxury Car | 40% |
| Tata Safari | Luxury Car | 40% |
| Hyundai Tucson | Luxury Car | 40% |
| MG Gloster | Luxury Car | 40% |
| Jeep Compass | Luxury Car | 40% |
| Skoda Superb | Luxury Car | 40% |
| Volkswagen Tiguan | Luxury Car | 40% |
| BMW, Audi, Mercedes-Benz (all models) | Luxury Car | 40% |
| Mahindra Scorpio-NÂ (Top Variant) | Luxury Car | 40% |
