Honda City Price After GST Cut - Old vs New Price of City

Published on 18 Sept, 2025, 2:30 PM IST

Updated on 18 Sept, 2025, 3:36 PM IST

Team Ackodrive

8 min read

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The Honda City has long been a household name in India, symbolising style, reliability, and premium comfort in the mid-size sedan segment. With its elegant design, spacious interiors, and Honda’s engineering finesse, the City has remained one of the most aspirational choices for buyers looking to upgrade from entry-level sedans or hatchbacks. Over the years, it has been offered in both a 1.5-litre petrol engine and an advanced hybrid variant, making it versatile for a wide range of buyers.

Under the older GST regime, however, mid-size sedans like the Honda City were subject to higher taxation. Petrol variants were taxed at 28% GST plus 17% cess, totalling 45%, while hybrids were taxed at 28% GST plus 15% cess, totalling 43%. This meant that the City, despite being competitively priced in its class, still bore the burden of a steep tax structure that inflated its ex-showroom cost.

With the rollout of GST 2.0, effective from September 22, 2025, this tax framework has been streamlined. Now, both the petrol and hybrid variants of the Honda City fall under a flat 40% GST rate, with the cess component eliminated. This change has led to a direct price drop of around ₹41,000–₹57,000, depending on the variant, making the City more affordable while retaining its premium positioning.

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Honda City (Petrol Variants) New Prices after the GST Cut

The petrol-powered Honda City, equipped with its 1.5-litre i-VTEC engine, is known for its refinement, reliability, and everyday drivability. Previously taxed at 45% (28% GST + 17% cess), it now falls under the new 40% GST slab. This results in a 5% tax reduction, translating into substantial savings for buyers across all trims, from the base manual versions to the higher CVT-equipped models.

City Variant	Old Price (Ex-showroom)	New Price (Ex-showroom)	Reduction	Reduction (%)
1.5 ZX-R CVT	₹16,72,900	₹16,15,214	₹57,686	3.45%
1.5 ZX-R CVT (Metallic)	₹16,64,900	₹16,07,489	₹57,411	3.45%
1.5 VX-R CVT	₹15,54,900	₹15,01,282	₹53,618	3.45%
1.5 ZX-R	₹15,47,900	₹14,94,524	₹53,376	3.45%
1.5 VX-R CVT (Metallic)	₹15,46,900	₹14,93,558	₹53,342	3.45%
1.5 ZX-R (Metallic)	₹15,39,900	₹14,86,800	₹53,100	3.45%
1.5 Sports CVT	₹14,96,900	₹14,45,283	₹51,617	3.45%
1.5 Sports CVT (Metallic)	₹14,88,900	₹14,37,558	₹51,342	3.45%
1.5 V-R CVT	₹14,47,900	₹13,97,972	₹49,928	3.45%
1.5 V-R CVT (Metallic)	₹14,39,900	₹13,90,248	₹49,652	3.45%
1.5 VX-R	₹14,29,900	₹13,80,593	₹49,307	3.45%
1.5 VX-R (Metallic)	₹14,21,900	₹13,72,869	₹49,031	3.45%
1.5 V-R	₹13,22,900	₹12,77,283	₹45,617	3.45%
1.5 V-R (Metallic)	₹13,14,900	₹12,69,558	₹45,342	3.45%
1.5 SV-R	₹12,46,000	₹12,03,034	₹42,966	3.45%
1.5 SV-R (Metallic)	₹12,38,000	₹11,95,310	₹42,690	3.45%

Honda City (Hybrid Variants) New Prices after the GST Cut

The Honda City hybrid, featuring Honda’s e:HEV technology, offers improved fuel efficiency and reduced emissions appealing to buyers seeking both performance and eco-friendliness. Earlier, hybrids like the City were taxed at 43% (28% GST + 15% cess). With GST 2.0, they now also come under the flat 40% GST bracket. This 3% tax cut means buyers enjoy savings of ₹41,000, making hybrid technology more accessible to Indian families.

City Variant	Old Price (Ex-showroom)	New Price (Ex-showroom)	Reduction	Reduction (%)
1.5 ZX-R eHEV	₹19,97,990	₹19,56,074	₹41,916	2.10%
1.5 ZX-R eHEV (Metallic)	₹19,89,990	₹19,48,242	₹41,748	2.10%

Why have the prices been reduced for the Honda City?

The Honda City belongs to the mid-size sedan segment, where vehicles longer than 4 metres and with engines up to 1.5 litres were previously subjected to a higher cess in addition to GST. The earlier taxation meant:

Petrol variants: 45% total tax
Hybrid variants: 43% total tax

With GST 2.0, both have been rationalised to a flat 40% GST rate. Here’s a snapshot of how the structure has changed.

Category	Old GST	Old Cess	Old Total Tax	New GST	New Total Tax	Change in Tax
Mid-size cars (up to 1,500cc)	28%	17%	45%	40%	40%	5% lower than before
Mid & Large Hybrid Cars (> 4,000 mm, > 1200 cc petrol / > 1500 cc diesel)	28%	15%	43%	40%	40%	3% lower than before

This change not only reduces the ex-showroom prices but also ensures that the Honda City remains more competitive against rivals like the Hyundai Verna, Skoda Slavia, and Volkswagen Virtus.

When are the new rates applicable?

The revised GST rates apply from September 22, 2025, onwards. Any Honda City variant invoiced, registered, or delivered after this date will carry the updated ex-showroom pricing under the flat 40% GST regime.

So, if you were planning to buy the Honda City, now is the time to do so. Thanks to the GST revisions, you can save up to ₹57,000, depending on the variant.

Disclaimer: The new prices mentioned in this article are tentative and based on the revised GST rates applicable from 22 September 2025. Final ex-showroom prices may vary slightly as manufacturers and dealerships update their pricing structures in line with the new taxation policy.

Frequently Asked Questions

Here are a few frequently asked questions and their answers about the Honda City price cut due to the GST reduction.

How much has the Honda City price reduced after the GST cut?

Depending on the variant, the Honda City is now cheaper by ₹42,000 to ₹57,000 for petrol models, and around ₹41,000 for hybrid variants.

Why were Honda City hybrids taxed differently earlier?

Hybrids attracted a 15% cess (in addition to 28% GST), resulting in a total tax of 43%. This was slightly lower than that of pure petrol cars but still higher than that of smaller vehicles.

What is the new GST rate for both petrol and hybrid City variants?

From September 22, 2025, both petrol and hybrid trims of the Honda City are taxed at a flat 40% GST rate with no cess.

Will on-road prices also be affected?

Yes. Since on-road prices are calculated on the ex-showroom value, the reduced GST directly lowers insurance, registration, and road tax costs.

Is GST 2.0 a permanent policy update?

Yes. GST 2.0 is a structural reform, not a temporary discount or incentive. These rates will remain unless the government revises them again.

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