Kia and Hyundai Spur Festive Cheer with GST Rate Cuts for Affordable Driving
Kia and Hyundai have both announced they will pass on the GST reduction benefits to customers, lowering prices across their car portfolios. This move, effective from 22 September 2025, is viewed as a consumer-friendly reform, aiming to boost demand and enhance accessibility in India's automotive sector.
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- India
Kia India declared on Monday its decision to transfer the complete benefit of the recent Goods and Services Tax (GST) reductions to customers, effective from 22 September 2025. The initiative covers the entire Internal Combustion Engine (ICE) portfolio, signaling a commitment to affordability and accessibility in vehicle purchases.
Gwanggu Lee, Managing Director and CEO of Kia India, praised the government's reforms, describing them as 'visionary and citizen-centric.' He emphasized that this move aligns with Kia's goal of promoting easier vehicle access and boosting the automotive industry's growth, especially ahead of the festive season.
Similarly, Hyundai Motor India Limited (HMIL) pledged to extend the GST reduction benefits from the date of implementation, promising savings from Rs 73,808 to Rs 2.40 lakh for customers. Unsoo Kim, Managing Director of HMIL, highlighted the reform's significance in empowering consumers by making personal mobility more affordable, while aligning with the country's drive for economic growth and development.
The automotive sector, vital to India's economy, is expected to gain significantly from this tax reform. The GST on fuel variants like petrol, CNG, and LPG not exceeding 1200 cc and 4000 mm, and diesel variants up to 1500 cc, will drop to 18% from the previous 28% rate, offering substantial savings.
(With inputs from agencies.)
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