NewKerala.com

Key Points

Kia India has committed to passing the complete GST reduction benefits to customers across all its internal combustion engine vehicles. The move follows Hyundai's similar announcement to transfer full tax savings to buyers starting from the effective date. This GST reform lowers tax rates from 28% to 18% for qualifying petrol, hybrid, and diesel vehicles. The automotive industry expects this measure to boost consumer sentiment and drive festive season sales.

Key Points: Kia India Passes Full GST Benefit to Customers on All Cars

  • Kia extends GST cuts across entire ICE portfolio effective September 2025
  • Hyundai also pledged full GST benefits to customers from effective date
  • Petrol and hybrid cars under 1200cc now taxed at 18% instead of 28%
  • Buyers can save between ₹73,808 to ₹2.40 lakh on vehicle purchases
3 min read

Kia India extends full GST benefits to customers

Kia India announces full GST reduction benefits for all ICE vehicles starting September 22, 2025, following Hyundai's similar move to boost festive sales.

"We are proud to pass on the full benefit of the GST rate reductions to our customers - Gwanggu Lee, Kia India CEO"

New Delhi, September 8

Kia India, on Monday, announced that it will pass on the complete benefit of the recent Goods and Services Tax (GST) reduction to customers across its entire ICE portfolio, effective 22 September 2025.

Following is a table that lays out the Hyundai car prices with reduced GST:

Commenting on the announcement, Gwanggu Lee, Managing Director and CEO of Kia India, said, "We welcome the Government of India's visionary citizen-centric reforms to reduce the GST on passenger vehicles. 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 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 energize consumer sentiment and drive demand during the upcoming festive season."

On Sunday, Hyundai Motor India (HMIL) also vowed that it will pass on the complete benefit of the recent GST rate reduction on passenger vehicles to its customers right from the date the revised GST rates come into effect.

The carmaker said buyers will save money in the range of Rs 73,808 to Rs 2.40 lakh, depending on the Hyundai car variant they choose this festive season.

Unsoo Kim, Managing Director, Hyundai Motor India Limited, said, in a statement, "We sincerely appreciate the progressive and far-sighted move by the Government of India to reduce GST on passenger vehicles."

"This reform is not only a boost to the automotive industry but also a strong step towards empowering millions of customers by making personal mobility more affordable and accessible. As India moves forward on the path of Viksit Bharat, Hyundai remains committed to aligning with the nation's growth ambitions by ensuring our cars and SUVs continue to deliver value, innovation and joy of driving," Unsoo Kim added.

The automobile sector, one of the largest contributors to the Indian economy, will also benefit from the GST reforms.

Petrol and petrol hybrid cars, along with LPG and CNG variants not exceeding 1200 cc and 4000 mm in length, will now be taxed at 18 per cent instead of 28 per cent.

Diesel and diesel hybrid cars of up to 1500 cc and 4000 mm will see the same reduction.

- ANI

Share this article:

Reader Comments

R
Rohit P
Finally some relief for car buyers! The 28% GST was too high for years. Hope other manufacturers follow Kia and Hyundai's lead. This will boost auto sales during festive season for sure.
A
Arjun K
While this is good news, I hope dealerships don't add hidden charges or reduce discounts to compensate. Need proper monitoring to ensure customers actually get the full benefit.
S
Sarah B
As an expat living in India, I appreciate how this government is making cars more affordable. The GST reduction from 28% to 18% is substantial and will help many families upgrade their vehicles.
V
Vikram M
Perfect timing before festive season! My family was considering Sonet, and this price reduction makes it much more viable. Kudos to the government for this pro-people decision. 🇮🇳
M
Michael C
This is exactly what the automotive sector needed. Lower taxes will stimulate demand and help the industry recover. Smart economic move that benefits both consumers and manufacturers.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50