Maruti Slashes Car Prices: GST Benefits and Festive Diwali Discounts Rolled Out Across Models

India’s largest carmaker Maruti Suzuki has announced a major price cut across its popular models, passing on GST benefits and rolling out additional Diwali discounts. The move is expected to boost festive sales, attract first-time buyers, and intensify competition in the auto market.

Bharat Daily Samachar

9/18/20253 min read

By: Bharat Daily Samachar Date: 18 Sep,2025

A Festive Bonanza for Car Buyers

In a big relief for car buyers ahead of the festive season, Maruti Suzuki India Ltd. has announced price cuts across its portfolio, combining GST pass-through benefits with special Diwali offers. The company, which dominates India’s passenger car market, said this move will make its vehicles more affordable and appealing to a wider segment of customers.

The announcement has been welcomed by both potential buyers and industry experts, who believe that the timing — just before Diwali — could give a strong push to the automobile sector, which has been recovering from supply chain disruptions and fluctuating demand over the past two years.

GST Pass-Through Explained

The Goods and Services Tax (GST) regime has had a direct impact on car prices in India, with changes in tax slabs often leading to fluctuations in the final cost to consumers. Maruti Suzuki’s latest decision is to fully pass on the tax benefit to customers instead of absorbing it, meaning car buyers will now pay less for several models.

A company spokesperson explained, “Maruti Suzuki remains committed to customer satisfaction. By passing on GST benefits and adding festive season offers, we aim to strengthen the joy of car ownership this Diwali.”

Extra Diwali Discounts on Top

Alongside GST pass-through, Maruti has sweetened the deal with Diwali-exclusive discounts. These include cash discounts, exchange bonuses, and corporate benefits depending on the model. Popular cars like Swift, Baleno, WagonR, Dzire, and Brezza are among those expected to see significant price reductions.

Dealerships across metro cities and Tier-II towns are already reporting an increase in footfall since the announcement. Industry insiders say the offers may range from ₹20,000 to over ₹1 lakh, depending on the model and variant.

Why This Move Matters

The Indian automobile sector is heavily dependent on festive season sales, particularly around Navratri and Diwali, when families prefer to make big-ticket purchases. By lowering prices during this peak demand period, Maruti is looking to consolidate its leadership position while countering rising competition from rivals such as Hyundai, Tata Motors, and Mahindra.

Analysts point out that the strategy also helps in two ways:

  1. Volume Growth – Lower upfront costs will attract more first-time car buyers and middle-class families.

  2. Customer Loyalty – By visibly passing on GST benefits, Maruti reinforces its image as a customer-centric brand.

A Boost for Middle-Class Buyers

For the Indian middle class, which forms the bulk of Maruti’s customer base, the announcement could not have come at a better time. With inflationary pressures and rising fuel costs straining household budgets, lower car prices make ownership more feasible.

First-time buyers, especially young professionals and small families, are expected to benefit the most. “I was planning to buy a car around Diwali, but was worried about prices. Now with discounts and GST cuts, it feels like the right time,” said a prospective buyer at a Noida dealership.

Impact on the Auto Market

Maruti’s price cuts are likely to trigger a chain reaction across the auto industry. Competitors may be forced to announce their own festive schemes to stay competitive. This could further fuel demand and turn Diwali 2025 into one of the strongest sales seasons in recent years.

Industry experts believe the move could help the sector cross pre-pandemic sales levels, creating momentum for the next financial year.

Challenges Ahead

While the announcement has created excitement, experts also caution that challenges remain. Rising interest rates on auto loans and high insurance premiums could offset some benefits for buyers. Additionally, ongoing global supply issues, particularly in semiconductor availability, may affect delivery timelines.

Still, Maruti’s strong supply chain and wide dealership network are expected to help the company meet the surge in festive demand better than most rivals.

Looking Forward

Maruti Suzuki has consistently maintained its top spot in India’s car market, but the road ahead is becoming more competitive with new launches, electric vehicles, and changing consumer preferences. By aligning pricing strategies with customer expectations and market dynamics, Maruti is signaling that it intends to remain the go-to brand for Indian car buyers.

Conclusion

Maruti Suzuki’s decision to cut car prices by passing on GST benefits and adding festive Diwali discounts is a masterstroke aimed at delighting customers and reinforcing its market dominance. For Indian families looking to buy a car this festive season, the timing couldn’t be more perfect.

As showrooms light up with offers and buyers line up for test drives, the real winner this Diwali may well be the Indian consumer, driving home a new car at a price that feels like a true festive gift.