Renault Joins Tata and Mahindra in Passing Full GST Benefits to Customers, Slashes Prices by Up to ₹96,000

French automaker Renault India has announced that it will pass on the complete benefit of the revised GST 2.0 structure to customers, with price reductions of up to ₹96,395 across its entire product portfolio. The move comes as part of a wave of customer-friendly initiatives by Indian car manufacturers following the GST Council's landmark automotive taxation reform.

The revised pricing will be effective on all deliveries from 22nd September 2025, coinciding with the first day of Navratri, though customers can begin booking their Renault vehicles at the new prices immediately across all dealerships nationwide. This strategic timing is expected to energise demand during India's peak festive car-buying season.

"Passing on the full GST 2.0 benefit is a reflection of our unwavering commitment to our customers," said Venkatram Mamillapalle, Managing Director of Renault India. "We believe this timely initiative will not only make our cars more accessible but also energise demand during the festive season."

The price reductions affect Renault's complete lineup, making the Kwid available from just ₹4.29 lakh, whilst the Kiger and Triber now start at ₹5.76 lakh. The most substantial savings are available on the top-end Kiger variants, with the Emotion CVT 1-litre and Emotion DT CVT 1-litre T both seeing reductions of ₹96,395.

Industry-Wide Customer Benefits

Renault's announcement follows similar moves by Indian automotive giants Tata Motors and Mahindra & Mahindra, creating unprecedented competition to pass tax benefits directly to consumers. Tata Motors, which was the first major OEM to announce full GST benefit pass-through, has reduced prices by up to ₹1.55 lakh across its portfolio, with the popular Nexon SUV receiving the maximum reduction. 

Mahindra & Mahindra has implemented price cuts effective immediately from 6th September, offering savings of up to ₹1.56 lakh on its XUV3XO diesel variant. The company's popular models including the Thar, Scorpio, and XUV700 have seen substantial reductions ranging from ₹1.01 lakh to ₹1.56 lakh. 

Market leader Maruti Suzuki has also confirmed it will reduce prices, with Chairman RC Bhargava stating that the Alto could see price drops of ₹40,000-₹50,000, whilst the Wagon R may become ₹60,000-₹67,000 cheaper. 

Revolutionary Tax Structure Changes

The GST Council's 56th meeting on 3rd September 2025 approved a comprehensive overhaul of automotive taxation, replacing the complex multi-slab structure with a simplified two-tier system. Small cars under 4 metres in length with engines below 1,200cc (petrol) or 1,500cc (diesel) now attract 18% GST instead of the previous 28-31% including cess. 

Larger vehicles exceeding these specifications will be taxed at a flat 40% rate, down from the previous 48-50% total tax burden. The reforms eliminate the compensation cess entirely, creating transparency and reducing the overall tax incidence. 

Market Impact and Consumer Benefits

Industry experts predict the reforms will stimulate demand across segments, particularly benefiting first-time car buyers and the mass market. The simplified tax structure is expected to help the small car segment, which had been experiencing de-growth, to achieve over 10% growth this year. 

The timing of the implementation on 22nd September, coinciding with Navratri, positions carmakers to capitalise on India's traditional festive season car purchases. Additional savings are expected on road tax, as RTO charges calculated on ex-showroom prices will also decrease. 

Detailed Price Reduction Table

Below is the comprehensive breakdown of Renault's price reductions across all variants:

The automotive industry's unanimous decision to pass complete GST benefits to customers marks a significant shift in manufacturer-consumer relationships, prioritising market accessibility over short-term margin gains. This customer-first approach is expected to drive substantial growth in India's passenger vehicle market during the upcoming festive season.