The Indian automobile market is set to witness a major shake-up as the government prepares to roll out the new GST 2.0 framework on September 22, 2025. This revised tax structure is aimed at simplifying the current indirect tax system on cars, which has long been considered complex and heavily burdened with multiple slabs and cess charges.
One of the biggest beneficiaries of this change will be small petrol cars like the Maruti Suzuki Fronx, especially popular variants such as the Delta Plus (O). The price revision is expected to bring significant relief to car buyers, making vehicles more affordable and boosting overall automobile sales in India.
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What Changes Under GST 2.0 for Cars
Before GST 2.0, the tax structure for cars was divided into various slabs based on engine capacity, vehicle length, and fuel type, along with an additional compensation cess. For small petrol cars with an engine capacity of less than 1200cc and a length under 4 meters, the following tax applied:
- GST Rate: 28%
- Additional Cess: 1%
- Total Effective Tax: 29%
This multi-layered tax structure not only confused buyers but also led to higher ex-showroom prices for vehicles.
However, under GST 2.0, the government has simplified the system by introducing a flat 18% GST slab for small petrol cars. No additional cess will be applied, making the pricing structure much more transparent and consumer-friendly.
This move is expected to reduce the overall cost of ownership, making small cars more accessible to first-time buyers and families looking for budget-friendly options.
Impact on Maruti Suzuki Fronx Pricing
The Maruti Suzuki Fronx has been one of the most successful compact SUVs in the Indian market, thanks to its modern design, premium features, and affordable pricing. The Delta Plus (O) variant, which is a popular choice among buyers, currently has an ex-showroom price of ₹8.96 lakh.
With the GST 2.0 implementation, prices are expected to drop by around 8.5% for vehicles falling under the new 18% GST slab.
Price Calculation:
- Current Ex-Showroom Price: ₹8.96 lakh
- Expected Reduction (8.5%): Approximately ₹75,400 – ₹76,200
- New Expected Ex-Showroom Price: Around ₹8.20 lakh
This means buyers could potentially save ₹75,000 or more, making the Fronx an even more attractive option in the compact SUV segment.
Why This Price Drop Matters
The reduction in car prices due to GST 2.0 could have a positive ripple effect across the automobile industry. Here’s why it matters:
- Boost in Sales: Lower prices are likely to encourage more buyers to purchase new vehicles, giving a strong push to the auto sector, which has been recovering from sluggish sales in recent years.
- Better Affordability: Budget-conscious families and first-time car buyers will benefit the most, as small cars will become more affordable without compromising on features.
- Increased Competition: Brands like Maruti Suzuki, Hyundai, Tata Motors, and Kia will compete more aggressively, leading to better deals and offers for customers.
- Simplified Taxation: Dealers and manufacturers will face less complexity in pricing vehicles, creating more transparency in the market.
Final On-Road Price – What Buyers Should Know
While the ex-showroom price will drop significantly, the final on-road price will still include additional charges such as:
- RTO registration fees
- Insurance premiums
- Logistics and handling charges
However, with a lower base price, these additional costs will also decrease slightly, making the total on-road price even more attractive.
Buyers are advised to wait until after September 22, 2025, to get the most accurate pricing details from authorized Maruti Suzuki dealerships.
Also read: Hero Xoom 160 Review 2025 – Price, Specs, Mileage, and Features
Conclusion
The GST 2.0 rollout is set to revolutionize car pricing in India by simplifying taxes and making small cars more affordable. For popular models like the Maruti Suzuki Fronx Delta Plus (O), the expected price reduction of ₹75,000 or more is a big relief for buyers.
This move is not just beneficial for car buyers but also for the entire automobile ecosystem, as it encourages higher sales and strengthens the industry.
If you are planning to purchase a compact SUV like the Maruti Suzuki Fronx, waiting until after September 22, 2025, could be a smart decision. With simplified taxes and attractive new prices, now is the perfect time to plan your next car purchase.