Domestic automaker Tata Motors has announced that it will pass on the full benefit of the recent Goods and Services Tax (GST) reduction to its customers across its entire commercial vehicle range. The revised prices will come into effect from September 22, 2025, in line with the implementation of the new GST rates.
Under the new GST 2.0 framework, the Council has approved the removal of two tax slabs — 12 per cent and 28 per cent. As part of this restructuring, petrol, petrol-hybrid, LPG, and CNG-powered passenger cars with engine capacities below 1200 cc and within the sub-4 metre category will now attract a reduced GST rate of 18 per cent, down by 1,000 basis points from the earlier 28 per cent.
Similarly, diesel and diesel-hybrid cars with engine capacities below 1500 cc in the same sub-4 metre category will also be taxed at 18 per cent, instead of the previous 28 per cent rate.
Company's Statement
Making this announcement, Girish Wagh, Executive Director, Tata Motors, said, "The reduction in GST on commercial vehicles to 18% is a bold and timely step towards revitalizing India’s transport and logistics backbone. Inspired by the Hon’ble Prime Minister’s vision and the progressive reforms announced by the GST Council under the stewardship of the Hon’ble Finance Minister, Tata Motors is proud to extend the full benefit of GST reduction on all our commercial vehicles to customers across the country."
"With a rich legacy of trust and an expansive portfolio of future-ready vehicles and mobility solutions, we continue to be the partner of choice for those who move India forward- empowering businesses, enabling mobility, and fueling growth," he added.
How Tata Motors' price cut will drive down costs and modernise fleets
By reducing prices across the commercial vehicle range, Tata Motors aims to further reduce the total cost of ownership for transporters, fleet operators and small businesses, the company said in an official release. This will lead to faster fleet modernisation with greater access to advanced and clean mobility solutions, helping transporters reduce costs, improve operational efficiency and increase profits.
How much will prices be reduced?
According to the company, the possible price cuts on Tata Motors commercial vehicles from September 22, 2025 are as follows.
Product |
Reduction in price range (Rs) |
HCV |
from 2,80,000 to 4,65,000 |
ILMCV |
from 1,00,000 to 3,00,000 |
Buses & Vans |
from 1,20,000 to 4,35,000 |
SCV Passenger |
from 52,000 to 66,000 |
SCV & Pickups |
from 30,000 to 1,10,000 |