Tata Nexon GST Cut: Drive India’s Favorite SUV from ₹6.20 Lakh?

The Indian car market just got a major shake-up with the introduction of GST 2.0. Effective September 22, 2025, the new tax reform has slashed GST rates on SUVs, making some of the country’s most popular cars more affordable than ever before. Leading the pack is the Tata Nexon, which has now become cheaper by up to ₹1.55 lakh across different variants. For families planning to buy a compact SUV this festive season, this could be the best time to book one.

Massive Price Cuts on Tata Nexon Variants

Tata Motors has confirmed that the entire Nexon line-up—petrol, diesel, manual, and automatic—will now cost less. This drop in prices comes directly from the government’s decision to lower the overall GST burden on SUVs. Depending on the model, customers can now save between ₹68,000 and ₹1.55 lakh, which is a huge relief for car buyers.

What Changed in GST 2.0 and Why It Matters

Earlier, compact SUVs like the Nexon were heavily taxed. Buyers had to pay 28% GST plus up to 22% additional cess, which made the total tax nearly 50%. This pushed SUV prices much higher than hatchbacks or sedans.

Under the new GST 2.0 reform, SUVs now fall under a flat 40% GST category, with no extra cess. That 10% difference has led to direct price reductions across all Nexon trims. This move makes SUVs more affordable and helps boost sales just in time for the festive season, when car demand traditionally peaks in India.

Why Tata Nexon Buyers Should Act Fast

The GST cut has not only reduced the upfront cost of buying a Nexon but also lowered the overall ownership expenses. Here’s why now could be the perfect time to book:

• Festive Season Demand – With Diwali and other festivals around the corner, Nexon sales are expected to rise sharply.

• Lower Insurance Costs – Insurance premiums are calculated on ex-showroom prices. With prices dropping, premiums are now cheaper too.

• Reduced EMIs – A lower car price means smaller monthly installments for those opting for loans.

• High Resale Value – Nexon already has strong demand in the used car market. A lower entry price may boost resale prospects further.

Tata Nexon’s Strong Points Beyond Price

Price cuts are big news, but the Nexon’s real strength lies in what it offers. Known for its 5-star Global NCAP safety rating, the SUV is among the safest cars on Indian roads. It comes with connected car technology, touchscreen infotainment, premium interiors, and multiple engine options to suit every type of buyer.

Tata also offers electric and CNG models in its lineup, showing its focus on sustainable mobility. For buyers looking at long-term ownership, the Nexon’s reliability and wide service network add even more value.

Nexon vs Rivals: The New Battle in Compact SUVs

With its revised prices, the Nexon is now positioned very competitively. Rivals like the Maruti Brezza, Hyundai Venue, Kia Sonet, and Mahindra XUV300 will now face added pressure, especially since Tata has managed to offer premium features at a lower price point.

Industry experts believe the price cut could shift buyer preference in Nexon’s favor during the upcoming festive season. Given Tata’s strong market presence and trust factor, Nexon may well become the top choice for families seeking an affordable yet premium SUV.

Conclusion

The Tata Nexon has always been a popular SUV in India, but the GST 2.0 reform has turned it into an even bigger value-for-money option. With price drops of up to ₹1.55 lakh, buyers now have a rare chance to get a feature-packed, safe, and stylish SUV at its most affordable price yet.