Maruti Suzuki Chairman Hails GST Reforms
New Delhi, September 6, 2025: Maruti Suzuki Chairman RC Bhargava has welcomed the government’s sweeping GST reforms, calling them a landmark move for the auto industry. He said the changes would provide significant relief to both automakers and buyers, especially in the small car segment, which accounts for nearly 70% of Maruti’s sales.
Speaking to Business Standard, Bhargava noted that while the reforms come just before the festive season, their real benefit lies in their long-term impact. “This reform measure is not for one month or two months. It will boost the economy as we go along. I expect the small car segment to grow at close to 10% annually, while the industry overall could expand by 7–8% a year,” he explained.
The GST Council recently announced that small cars under 1,200 cc (petrol, LPG, CNG) and under 1,500 cc (diesel) will now be taxed at 18% instead of 28%. Larger cars, meanwhile, will face a 40% rate, though the controversial cess has been scrapped.
Expected Price Cuts on Maruti Models
Bhargava confirmed that the Maruti Alto K10 could see a reduction of ₹40,000–50,000, while the WagonR may become cheaper by ₹60,000–67,000. He added that final figures are still being worked out, since transportation costs and dealer margins were not considered in the GST Council’s calculation.
Industry estimates suggest an average 9% price reduction across Maruti’s portfolio. This could trigger higher demand during the upcoming Diwali season, a crucial sales period for automakers.
Expected Maruti Price Cuts (Ex-Showroom)
| Model | Current Price | Expected Price | Drop |
| Alto K10 | ₹4.09 lakh | ₹3.79 lakh | ₹40,000 |
| WagonR | ₹5.79 lakh | ₹5.19 lakh | ₹57,000 |
| Swift | ₹6.49 lakh | ₹5.91 lakh | ₹58,000 |
| Dzire | ₹6.84 lakh | ₹6.15 lakh | ₹61,000 |
| Baleno | ₹6.74 lakh | ₹6.14 lakh | ₹60,000 |
| Fronx | ₹7.58 lakh | ₹6.90 lakh | ₹68,000 |
| Brezza | ₹8.69 lakh | ₹7.91 lakh | ₹78,000 |
| Eeco | ₹5.70 lakh | ₹5.19 lakh | ₹51,000 |
| Ertiga | ₹9.12 lakh | ₹8.71 lakh | ₹41,000 |
| Celerio | ₹5.64 lakh | ₹5.14 lakh | ₹50,000 |
| Ignis | ₹5.84 lakh | ₹5.32 lakh | ₹52,000 |
| Jimny | ₹12.74 lakh | ₹11.60 lakh | ₹1.14 lakh |
| XL6 | ₹11.94 lakh | ₹11.59 lakh | ₹35,000 |
| Invicto | ₹25.51 lakh | ₹22.75 lakh | ₹2.25 lakh |
| S-Presso | ₹4.26 lakh | ₹3.88 lakh | ₹38,000 |
Boost for the Small Car Market
The reform comes at a crucial time for India’s auto industry, which has been struggling with rising costs and weak demand in recent months. According to Bhargava, the price cuts will be particularly beneficial for entry-level cars.
“I think that with this reform measure, every one of us will see some butter somewhere on our plate. Maruti too will regain the butter it has been losing over the last five to six years,” he remarked.
Industry experts believe this will not only revive buyer sentiment but also increase sales volumes in the small car category, which is critical for market leaders like Maruti Suzuki.
Long-Term Economic Impact
While the immediate benefits may be limited to the festive season, Bhargava stressed that the reform’s true value lies in its long-term growth potential.
With affordable cars driving mobility across India, analysts expect the GST cut to strengthen rural and urban demand alike. For Maruti, which dominates India’s entry-level market, the reform could secure an even stronger foothold in the years ahead.