
New Delhi, Sep 8: In alignment with recent GST reforms announced at the 56th GST Council meeting on September 3, Kia India has confirmed it will fully pass on the benefits of reduced Goods and Services Tax rates to its customers.
This follows a wave of similar announcements by other automakers reiterating their commitment to transfer cost savings from tax policy shifts to end buyers.
The GST revision lowers the tax on small cars (under 4m in length, petrol up to 1,200 cc or diesel up to 1,500 cc) from 28% to 18%, with no additional cess. Larger vehicles now attract a flat 40% GST, down from rates combining up to 48% including cess.
A number of automakers like Mahindra & Mahindra, Tata Motors, Hyundai, Toyota, Renault, TVS, Skoda, Lexus, and Mercedes-Benz India have already pledged to pass on the full GST benefits, with reductions ranging from tens of thousands to several lakhs of rupees—effective mainly from September 22, 2025, coinciding with the festive season.