Kia Motors Cars Now More Affordable as GST 2.0 Tax Reforms The Prices Across India

In recent days, the Indian automotive industry has been shifting towards the price integration of vehicles with the latest introduction of the new GST 2.0 tax regime. Brands like Tata, Mahindra, and Hyundai are implementing new prices on their vehicles as per the latest GST rules and regulations. The most recent addition to the list comes from Kia India, which announced that it will pass on the full benefits of the recently implemented GST tax slab on cars.

​Kia Motors has officially announced price reductions across its entire lineup of internal combustion engine vehicles. These revised prices will come into effect on September 22, 2025. This sudden revamp in prices came after the announcement of GST 2.0 at the 56th GST Council held by the government of India. With the new GST reforms, Kia's decision to fully transfer the GST benefits to customers arrives just in time for the festive season, a period traditionally marked by heightened vehicle sales.

Key Highlights of GST 2.0 for the Auto Sector

The GST 2.0 tax reforms replace the previously old tax regime and multi-layered cess framework with a narrowed two-slab tax structure. This new tax regime will gradually reduce the prices of every vehicle across the brand for cars, bikes, and scooters.

Notably, petrol and petrol-hybrid vehicles up to 1200 cc and under 4 meters, alongside diesel and diesel-hybrid cars up to 1500 cc, now attract an 18% GST rate. Larger cars and SUVs are now taxed at a flat 40%, eliminating the compensation cess that previously raised their effective rates substantially.

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From The Director’s Desk

Speaking about the introduction of the new GST reforms in India, Mr. Gwanggu Lee, Managing Director & CEO of Kia India, said, “We gratefully welcome the government's visionary customer-centric tax reforms to reduce the GST on passenger vehicles. This will help to make timely decisions towards purchasing the vehicles more affordably.”

He later added, “We, the family of Kia Motors, are proud to pass on the full benefits of the GST rate reductions to our customers, ensuring more affordability and greater accessibility.”

Kia Motors' Model-Wise Price Cuts

Kia India has revised the pricing of all the cars under the portfolio with a reduction in benefits due to the recent tax cut rates by implementing the new GST 2.0 tax regime. The recent price changes are mentioned in the table below:

These reductions are effective for all deliveries from September 22, 2025. The most significant cut is seen on the flagship Carnival, while popular models like Sonet and Seltos have also now become more affordable for the people of India.

Conclusion

With the GST 2.0 reform translating directly into lower car prices, Kia India expects a surge in bookings and showroom footfall as the festive season approaches. The GST cuts underscore its market leadership and intent to foster positive industry momentum.

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