The Indian automobile industry has just received a massive boost with the GST Council’s decision to slash GST rates on small cars and select SUVs from 28% to 18%. This move is expected to benefit car buyers across the country, especially those looking for budget-friendly hatchbacks and compact SUVs. The price cut translates into savings ranging from ₹60,000 to ₹80,000 on small cars, while micro-SUVs and entry-level SUVs could see prices drop by up to 13%.
This article explores the top 3 most attractive cars to buy after the GST rate cut—Maruti Swift, Tata Punch, and Hyundai Exter. We will look at their pricing impact, features, and why they now deliver unmatched value for money.
Why the GST Cut Matters for Car Buyers
Before we get into the top models, let’s quickly understand why this rate cut is a game changer.
- Earlier GST Slab: Cars under 4 meters with petrol engines ≤1.2L and diesel engines ≤1.5L attracted 28% GST + additional cess, resulting in a tax burden of 29–31%.
- New GST Slab: The GST has now been reduced to 18% flat, cutting down the tax component by nearly 10–13 percentage points.
- Impact: Car manufacturers are expected to pass on the benefit to buyers, making entry-level cars significantly more affordable.
For buyers, this means lower ex-showroom prices, reduced on-road cost, and lighter monthly EMIs. Discover more insights in the detailed article. Click Here
Side-by-Side Price Impact: Top 3 Most Attractive Car Buys After GST Rate Cut
| Car Model | Old Effective Price (Approx.) | New Effective Price (Post GST Cut) | Estimated Savings |
|---|---|---|---|
| Maruti Suzuki Swift | ₹6.50–₹9.60 lakh | ₹5.90–₹8.90 lakh | ₹60,000–₹70,000 |
| Tata Punch | ₹6.20–₹10.00 lakh | ₹5.50–₹8.80 lakh | ₹60,000–₹1.20 lakh |
| Hyundai Exter | ₹6.40–₹10.10 lakh | ₹5.60–₹8.90 lakh | ₹70,000–₹1.20 lakh |
Note: Prices are indicative, based on average GST reduction impact. Exact figures may vary by variant and state road tax.
1. Maruti Suzuki Swift: Still the King of Hatchbacks
The Maruti Suzuki Swift has always been India’s favorite hatchback, known for its sporty design, reliable engine, and fuel efficiency. With the GST rate cut, the Swift becomes even more affordable, shaving off nearly ₹60,000–₹70,000 across variants.
Key Highlights
- Engine: 1.2L DualJet Petrol (manual & AMT options)
- Mileage: Up to 24 km/l (ARAI)
- USP: Strong resale value, widespread service network, affordable maintenance
- Post-GST Edge: Entry-level Swift variants now comfortably under ₹6 lakh ex-showroom, a huge win for budget buyers.
2. Tata Punch: The Micro-SUV Advantage
The Tata Punch is already a market hit with its SUV-like stance in a compact package. Now with the GST cut, its pricing advantage gets sharper, making it one of the best-value urban SUVs.
Key Highlights
- Engine: 1.2L Revotron Petrol (manual, AMT, and CNG)
- Safety: 5-star Global NCAP rating, one of the safest in its class
- Features: 7-inch touchscreen, iRA connected tech, cruise control (higher trims)
- Post-GST Edge: Buyers can save up to ₹1.2 lakh, bringing mid-variants into the sweet spot for first-time SUV buyers.
3. Hyundai Exter: A Fresh, Feature-Loaded Contender
Launched recently, the Hyundai Exter has carved a niche as a tech-loaded micro-SUV, targeting young urban buyers. The GST reduction now makes the Exter one of the most attractive cars in its segment.
Key Highlights
- Engine: 1.2L Petrol & factory-fitted CNG option
- Safety: 6 airbags standard across all variants
- Features: Dashcam, sunroof, digital cluster, wireless charger, connected car features
- Post-GST Edge: With price cuts of ₹70,000–₹1.2 lakh, the Exter offers premium features at sub-₹6 lakh entry pricing.
Which Car Offers the Best Value?
- Budget Conscious Buyers: The Maruti Swift is the best pick for those seeking reliability, low running costs, and strong resale.
- Safety & SUV Appeal: The Tata Punch stands out with its rugged design and 5-star safety, now at a friendlier price point.
- Tech & Features: The Hyundai Exter is perfect for younger buyers or families wanting top-end features without stretching the budget.
Final Verdict
The GST rate cut from 28% to 18% has changed the game for car buyers in India. Among all models, the Maruti Swift, Tata Punch, and Hyundai Exter emerge as the most attractive buys, thanks to their high demand, segment-leading features, and substantial price benefits.
Explore more details in this article. Click Here
With festive season demand rising and carmakers expected to pass on full GST savings, this could be the perfect time to book your next car.
