Kia India Cuts Car Prices by Up to ₹4.48 Lakh After GST 2.0 Rate Reduction

Kia India has decided to reduce the prices of its passenger vehicles by up to ₹4.48 lakh following the GST 2.0 tax reforms announced earlier this month. The company said it will pass on the full benefit of the revised tax structure to customers across its internal combustion engine (ICE) vehicle portfolio, with the changes coming into effect from September 22, 2025.

GST 2.0 Tax Reforms and Impact

The move follows the GST Council’s 56th meeting on September 3, 2025, where passenger vehicle tax slabs were rationalised under the GST 2.0 framework. Kia confirmed that the revised prices will take effect from September 22, 2025, and apply to its entire internal combustion engine (ICE) lineup.

Under GST 2.0, many ICE and hybrid passenger vehicles have shifted into 18% or 40% tax brackets, replacing the earlier 28% plus compensation cess regime. Electric vehicles continue to attract a 5% GST, while hydrogen fuel cell vehicles have also been brought under the 5% slab.

Model-Wise Price Reduction

Kia has shared a model-wise list of the maximum price cuts that customers can expect:

Kia India’s Statement

Gwanggu Lee, Managing Director and CEO of Kia India, welcomed the reforms, calling them citizen-centric and timely.

“This transformative measure represents a progressive and timely decision towards making vehicle purchase more affordable for consumers and bringing a boost to the automotive sector's growth. In line with this vision, we are proud to pass on the full benefit of the GST rate reductions to our customers, ensuring more affordability and greater accessibility,” he said.

He further added, “This significant reform simplifies the taxation framework and reinforces the government's commitment to sustainable economic growth and innovative mobility solutions. We are confident this move will energise consumer sentiment and drive demand during the upcoming festive season.”

Conclusion

By fully transferring the GST 2.0 benefits to customers, Kia India is aiming to make its vehicles more accessible while boosting sales momentum during the festive period. With cuts of up to ₹4.48 lakh, models like the Kia Carnival, Sonet, and Syros are expected to see the most demand uplift.

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