Auto Industry Anticipates GST Rate Cuts, Maruti Suzuki and Hero MotoCorp Poised to Benefit

1 min read     Updated on 23 Aug 2025, 01:29 PM
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Reviewed by
Ashish ThakurBy ScanX News Team
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Overview

The Indian automotive industry is expecting GST rate reductions by Diwali, potentially benefiting various segments. Entry-level cars may see rates drop to 18%, while premium vehicles could experience 8-10% reductions from the current 50% rate. Maruti Suzuki and Hero MotoCorp are positioned as major beneficiaries due to their exposure to entry-level segments. The sector is experiencing a temporary decline in bookings as customers delay purchases in anticipation of lower rates. Dealers and manufacturers face challenges with thin profit margins and cannot offer pre-emptive discounts. The GST Council's decision is expected within 15-20 days, potentially reshaping the competitive landscape in the Indian automotive market.

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*this image is generated using AI for illustrative purposes only.

The Indian automotive sector is bracing for potential tax reforms as the GST Council is expected to announce new rates by Diwali, potentially bringing significant benefits to the industry. The anticipated changes have led to a temporary slowdown in bookings, as customers delay purchases in hopes of benefiting from the expected GST rate reductions.

Expected GST Rate Changes

The proposed tax reforms are expected to bring substantial relief to various segments of the auto industry:

  • Entry-level cars: GST rates likely to drop to 18%
  • Premium vehicles: Currently taxed at around 50% GST, could see 8-10% reductions

Impact on Major Players

Maruti Suzuki India and Hero MotoCorp are positioned as the biggest potential beneficiaries of these tax reforms, primarily due to their higher exposure to entry-level segments. These companies could see increased demand and potentially improved profit margins if the GST rates are reduced as expected.

Segment-wise Benefits

  • Passenger vehicles and two-wheelers: Expected to benefit the most from the GST rate cuts
  • Commercial vehicles: May see limited impact due to input tax considerations

Current Market Scenario

The auto sector is currently experiencing a temporary decline in bookings. This slowdown is attributed to customers postponing their purchases in anticipation of the GST rate reductions. The announcement of new rates is potentially expected within the next 15-20 days.

Challenges for Dealers and Manufacturers

Despite the potential for increased sales following the GST rate cuts, auto dealers and manufacturers are currently in a difficult position:

  • Unable to offer pre-emptive discounts due to thin profit margins
  • Facing a temporary slowdown in sales as customers wait for the new rates

Maruti Suzuki's Recent Development

While not directly related to the GST rate cuts, it's worth noting that Maruti Suzuki India Limited has a pending case with the Competition Commission of India (CCI). According to the company's recent LODR filing:

  • The next hearing at the National Company Law Appellate Tribunal (NCLAT) is scheduled for September 18, 2025
  • This ongoing legal matter could potentially impact the company's operations and should be monitored alongside the anticipated GST reforms

As the auto industry awaits the GST Council's decision, the potential tax reforms could reshape the competitive landscape, with companies like Maruti Suzuki and Hero MotoCorp well-positioned to capitalize on the changes. The coming weeks will be crucial for both manufacturers and consumers in the Indian automotive market.

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Auto Industry Revs Up with New Launches: Citroen C3X, Mercedes-AMG CLE 53 Coupe Lead the Pack

2 min read     Updated on 16 Aug 2025, 07:36 AM
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Reviewed by
Jubin VergheseBy ScanX News Team
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Overview

The Indian automotive market is experiencing a surge of new model launches in August. Citroen enters the hatchback segment with the feature-rich C3X priced at ₹7.90 lakh. Mercedes-Benz introduces the luxury AMG CLE 53 Coupe at ₹1.35 crore. Mahindra plans to unveil multiple electric SUV concepts. The two-wheeler segment sees the launch of Yezdi Roadster 2025 at ₹2.10 lakh and the anticipated TVS Apache RTX 300. Toyota updates its Urban Cruiser Taisor with enhanced safety features, starting at ₹7.77 lakh.

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*this image is generated using AI for illustrative purposes only.

The Indian automotive sector is witnessing a flurry of activity this August, with several manufacturers unveiling new models across various segments. From affordable hatchbacks to luxury coupes, the market is abuzz with fresh offerings catering to diverse consumer preferences.

Citroen Enters the Hatchback Arena

Citroen India has made a bold entry into the competitive hatchback segment with the launch of its C3X, priced at ₹7.90 lakh. The new model comes loaded with features typically found in higher segments, including:

  • Cruise control
  • Wireless connectivity
  • Six airbags
  • 360-degree camera

This aggressive pricing and feature list position the C3X as a strong contender in the crowded hatchback market.

Mercedes-Benz Unveils Luxury Coupe

At the premium end of the spectrum, Mercedes-Benz has introduced the AMG CLE 53 Coupe, carrying a price tag of ₹1.35 crore. This high-performance luxury coupe boasts:

  • A 3.0-litre twin-turbo engine
  • 48V mild-hybrid system

The AMG CLE 53 Coupe is set to cater to enthusiasts looking for a blend of luxury and performance in the Indian market.

Mahindra's Electric Vision

Mahindra & Mahindra is gearing up to make a significant impact in the electric vehicle (EV) space. The company plans to unveil multiple electric SUV concepts on August 15, including:

  • Vision T
  • Vision S
  • Vision SXT
  • Vision X

These concepts are expected to showcase Mahindra's future direction in the rapidly evolving EV segment.

Two-Wheeler Segment Updates

The two-wheeler market is also seeing notable launches:

Yezdi Roadster 2025

  • Priced at ₹2.10 lakh
  • Features a 334cc engine
  • Updated styling and features

TVS Apache RTX 300

  • Expected to feature a 300cc engine
  • Advanced performance capabilities
  • Anticipated to be unveiled at the Bharat Mobility Global Expo 2025

Toyota Enhances Urban Cruiser Taisor

Toyota has updated its Urban Cruiser Taisor, with a starting price of ₹7.77 lakh. The refreshed model now offers:

  • Six airbags across all variants
  • Two engine options

This update aims to enhance the safety features and powertrain choices for Toyota's compact SUV offering.

Industry Outlook

The diverse range of launches across various segments and price points reflects the dynamic nature of the Indian automotive market. From affordable hatchbacks to luxury coupes and electric concepts, manufacturers are striving to meet evolving consumer demands and regulatory requirements.

As the industry continues to navigate challenges such as electrification and stringent emission norms, these new launches demonstrate the sector's resilience and adaptability. The coming months are likely to see further innovations and introductions as automakers compete for market share in one of the world's fastest-growing automotive markets.

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