The Indian car market has received a big push with the introduction of GST 2.0, and MG Motor India has quickly passed on the full benefits to its customers. Starting from 7 September, the company revised prices of its SUV range, including Astor, Hector, and Gloster. This move makes MG’s SUVs more affordable and attractive for buyers, especially ahead of the festive season.
Why Prices Have Dropped
Under the new GST 2.0 rules, the tax on SUVs has been reduced from 45–50% to 40%. This reduction has brought down the overall cost of SUVs significantly. MG Motor India confirmed that it is directly transferring this benefit to buyers, without keeping any margin for itself.
New Price Benefits on MG SUVs
Depending on the model, customers can now save a considerable amount.
- Astor – Price cut up to ₹54,000
- Hector Petrol – Price cut up to ₹1.49 lakh
- Hector Diesel – Price cut up to ₹1.49 lakh
- Gloster – Price cut up to ₹3.04 lakh
The Gloster, being MG’s flagship SUV, has received the highest benefit, making it a stronger value-for-money option in the premium SUV segment.
Electric Cars Remain Unchanged
MG’s electric cars – Comet EV, ZS EV, and Windsor EV – will not see any price reduction under GST 2.0. That’s because electric vehicles already enjoy a much lower 5% GST slab, which is part of the government’s plan to promote EV adoption in India.
Additional Offers for Buyers
To make the deal even sweeter, MG Motor India is also offering:
- 100% on-road funding – Easier loan approvals for customers.
- 3-month EMI holiday – Buyers can delay their EMI payments, making it lighter on their pockets during the initial months.
These schemes aim to attract more customers during the festive period, when car sales usually go up.
Market Impact
MG is not the only brand passing on the GST benefits. Other carmakers like Hyundai, Tata, Mahindra, and Toyota have also announced similar price cuts on their ICE SUV models. This competitive price drop is expected to make SUVs more affordable for Indian families, boosting demand in the coming months.
Expert Opinion
GST 2.0 is likely to be a gamechanger for the Indian SUV market. Cars like Hector and Gloster, which were earlier considered premium buys, now become more accessible. While EV prices remain unchanged, ICE SUVs are seeing a direct benefit, which may temporarily shift buyer interest back towards traditional models.
Conclusion
The GST 2.0 reform has come as a blessing for SUV buyers in India. MG Motor India has passed on the entire benefit to its customers, making its SUVs more affordable by up to ₹3.04 lakh. With additional schemes like 100% on-road funding and EMI holidays, MG is clearly aiming to capture a larger share of the market this festive season. Buyers who were waiting for the right time to buy an SUV may find this the perfect opportunity.
FAQs
What is GST 2.0?
GST 2.0 is a revised tax structure where the GST rate on SUVs has been reduced from 45–50% to 40%, making vehicles cheaper.
Which MG SUV gets the biggest benefit?
The MG Gloster gets the highest benefit, with prices reduced by up to ₹3.04 lakh.
Are MG electric cars cheaper after GST 2.0?
No, MG EVs like Comet EV, ZS EV, and Windsor EV already have only 5% GST, so there is no additional reduction.
From when are the new prices effective?
The updated prices came into effect from 7 September 2025.
Do other brands also offer GST 2.0 benefits?
Yes, Hyundai, Tata, Mahindra, Toyota, and other major brands are also passing on the full GST benefit to customers.