Small Cars Get Cheaper in India! GST Slashed | Mixed Impact on Hybrids Explained - video Dailymotion

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Get ready for a new era of affordable driving! India’s latest GST reforms have slashed taxes on small cars, bikes up to 350cc, and three wheelers, making popular models like the Maruti Dzire and Kia Syros significantly cheaper. In this video, we break down the new GST rates, what qualifies as a 'small car', and how much money buyers can save. But it’s a mixed bag for hybrids: while compact hybrids become more affordable, larger hybrid SUVs still face high taxes.    We’ll compare the impact across segments small cars, hybrids, SUVs, bikes, EVs and reveal who wins and who loses after September 22, 2025. Whether you’re a first-time car buyer, considering a family upgrade, or curious about India’s automobile industry changes, this video is your one-stop guide to the GST overhaul!    👉 Don’t forget to like, comment, and subscribe for more updates.  ----------------------------------------------  #GST2025 #AffordableCars #SmallCarsIndia #HybridCars #AutoNews #MarutiDzire #KiaSyros #EVsIndia #TaxCut #Automobile  -------------------------------------------------------  👉Related Videos  • https://youtu.be/DQtEDaf5Zh0  • https://youtu.be/jVBzMlnbmM8  -------------------------------------------------------  👉Like, Share and Subscribe to Drivespark Channel for latest updates.  -------------------------------------------------------  🌍Visit our website:- https://www.drivespark.com  -------------------------------------------------------  📲 Stay Updated With Drivespark Via Social Media :-  ✔Facebook - https://www.facebook.com/drivespark/  ✔Twitter - https://x.com/Drivespark  ✔Instagram - https://www.instagram.com/drivespark/  ✔Snapchat - https://rb.gy/8a3cnv  -------------------------------------------------------  ~PR.304~ED.70~

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00:00Hi guys and welcome to DriveSpark and in today's news we are going to talk about the new GST slab

00:04that has just been set. Now small cars are set to become more affordable and there is other news as

00:10well. So let's begin this video and I will tell you everything you need to know about the new GST

00:14slab. The GST council has slashed rates on small cars, bikes up to 350cc and 3 wheelers to 18%

00:22from 28% and this is going to be effective from September 22nd 2025. This festive season

00:29reform promises cheaper rides, higher sales and renewed momentum for struggling auto sectors in

00:35the Indian market. The biggest winners of GST overall are the entry level vehicles. The council has

00:39slashed GST on small cars, bikes up to 350cc and 3 wheelers as I mentioned from 28% that was earlier

00:46to now 18%. This is a massive relief for the middle class buyers just ahead of the festive season. Now

00:53by small cars we mean petrol cars up to 1200cc and diesel cars up to 1500cc with a maximum length of

01:014 meters. This category which includes popular models like the Maruti Suzuki Desire and the Kia

01:06Cirrus falls entirely into the new 18% slab. The two wheelers like Royal Enfield Bullet and the

01:12Classic 350 along with commuter motorcycles and the 350cc segment also qualify for the reduced rate.

01:19Auto rickshaws to get the benefit making mass mobility a little more affordable. If we talk

01:25about hybrid cars that are under 4 meters and within the small engine limits also will join the 18% GST

01:32bracket. This makes model like the Nexon CNG and similar hybrid models a little more effective. However,

01:39larger hybrids exceeding 1200cc in petrol and 1500cc in diesel or which are longer than 4 meters in length

01:47will be shifted up to a higher 40% tax slab that is gonna be a little expensive on the pocket. Now

01:54this includes popular names like Maruti Grand Vitara, Toyota Innova Hycross and the new Maruti

01:59Victorious hybrid also. Essentially compact hybrids and full-size hybrid SUVs and sedans will also be

02:07taxed as per luxury on premium models as well. The GSC council has created a new 40% slab specially for

02:13luxury and high-end vehicles. Earlier these attracted up to 50% of tax including CES but now they fall under

02:21the flat 40% rate without additional CES included in them. This category includes cars that are longer

02:28than 4 meters as I mentioned and engine above 1200cc in petrol and 1500cc in diesel such as the Hyundai

02:35Accreta, the Kia Seltos, Tata Harrier, Mahindra XCV700 and Scorpio N. All of them are set to become

02:41slightly cheaper. The motorcycles above 350cc including the KTM Duke 390, Triumph Speed 400 also

02:48fall into this slab. For enthusiasts, this means that some relief on high-capacity bikes despite

02:54them being labelled as luxury goods. Buses, trucks and ambulances now face a flat 18% GST increase on the

03:02earlier 28%. This simplification makes commercial mobility a little more affordable particularly for

03:07the state transport and logistics operation. Auto parts too have been standardized under the 18% slab

03:14cutting through the earlier confusion of multiple HS code base rates. Now this will streamline the

03:20supply chain and reduce the classification disputes. Manufacturers and suppliers are expected to benefit

03:26from this uniformity. Now ultimately bringing down the operation cost in the industry. As far as

03:32electric vehicles are concerned, the council has decided to keep the GST on EVs unchanged at 5%.

03:39This applies to two-wheelers, three-wheelers, passenger vehicles, commuting and big cars as well.

03:44While rates remain attractive, no clarity has been given on luxury EVs. So that means especially those

03:50are priced above the Rs 40,000,000 mark. Brands like Mercedes, BMW and Tesla may still face some

03:56uncertainty on the taxation. Nevertheless, for the mass-market EVs from Tata and Mahindra,

04:02this unchanged rate ensures they remain the most affordable in their respective segments.

04:07This reduction from 28% to 18% translates to real savings. A small hatchback priced at Rs 6,000,000

04:13could now be nearly Rs 60,000,000 cheaper, making the car a little more accessible for first-time

04:19buyers. For two-wheeler buyers, commuter bikes and scooters, this will be a much-needed price

04:25correction. This is expected to give a strong push to rural and segment urban demand. Luxury and premium

04:31cars, while still taxed heavily, will also see a slight reduction since the CES has been eliminated

04:37and they will fall under the 40% of the tax slab. Now as I mentioned, all the GST changes will come into

04:43effect from September 22, 2025 this year. Just in time for the festive season, dealers have already

04:49expected demand to surge the customer hold-off purchases until the new tax slab has been applied.

04:56So yeah guys, this was the news and there is good news also as I mentioned that now

05:01small cars and affordable cars and bikes under 350cc will become really really affordable for the first

05:07time buyers. I hope you like this video. If you like to do give it a thumbs up, share and subscribe to

05:12all our social media channels and to keep watching such videos, please follow DriveSpark. I will see you

05:16in the next one.

Small Cars Get Cheaper in India! GST Slashed | Mixed Impact on Hybrids Explained

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