The Indian automotive landscape has recently undergone a major transformation, one that’s brought cheers to prospective car buyers nationwide. This shift, often dubbed GST 2.0, is a landmark reform in the Goods and Services Tax (GST) structure, specifically targeting the highly popular sub-4-meter compact SUV segment.
The most immediate and exciting outcome for consumers? A significant reduction in the price of their favorite rugged utility vehicle, the Tata Nexon.
The Tata Nexon, a five-star Global NCAP safety champion and one of India’s best-selling SUVs, is now more affordable than ever. With the new GST rates effective from September 22, 2025, the total tax burden on small cars—which includes the Nexon’s petrol and diesel variants—has been slashed substantially.
This is a pivotal moment for buyers looking for value, safety, and performance. Read on to see exactly how much you can save, variant-by-variant.
Before diving into the numbers, it’s essential to understand the mechanics of this price cut. The Nexon falls into the “small car” category (sub-4-meter length, with engine capacities under 1200cc for petrol and 1500cc for diesel).
Under the previous regime, these vehicles attracted a hefty combined tax of around 29% to 31% (28% GST + 1% to 3% Cess). The GST 2.0 reform rationalized this to a uniform 18% GST.
This is not a minor adjustment; it’s a colossal tax cut of up to 13% for certain variants, which directly translates into a remarkable reduction in the ex-showroom cost.
Statistic to Note: According to recent industry reports, the rollout of GST 2.0 and the subsequent price corrections helped Tata Motors achieve a record high in monthly passenger vehicle sales, with the Nexon alone selling over 22,500 units in September 2025, its best-ever performance. This shows the immediate market response to the lower pricing.
The price difference is substantial and varies across the spectrum of engine and transmission options. Diesel variants, which previously attracted a higher cess, benefit the most from this rationalization.
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The following tables clearly illustrate the Tata Nexon Post GST 2.0 Price across its most popular variants, detailing the old price, the new price, and the exact savings.
| Nexon Variant | Old Price (Ex-Showroom ₹) | New Price (Ex-Showroom ₹) | Price Reduction (₹) |
|---|---|---|---|
| Smart 1.2 MT | ₹7,99,990 | ₹7,31,890 | ₹68,100 |
| Smart + 1.2 MT | ₹8,89,990 | ₹7,99,990 | ₹90,000 |
| Pure + 1.2 MT | ₹9,69,990 | ₹8,87,390 | ₹82,600 |
| Creative + S 1.2 MT | ₹11,99,990 | ₹10,95,990 | ₹1,04,000 |
Diesel variants see the steepest cuts due to the higher pre-GST 2.0 cess being removed.
| Nexon Variant | Old Price (Ex-Showroom ₹) | New Price (Ex-Showroom ₹) | Price Reduction (₹) |
|---|---|---|---|
| Smart + 1.5 Diesel MT | ₹9,99,990 | ₹9,00,890 | ₹99,100 |
| Pure + 1.5 Diesel MT | ₹10,99,990 | ₹9,90,990 | ₹1,09,000 |
| Creative + S 1.5 Diesel MT | ₹12,69,990 | ₹11,44,090 | ₹1,25,900 |
| Fearless+ PS 1.5 Diesel MT DT | ₹14,69,990 | ₹13,24,190 | ₹1,45,800 |
The savings remain highly attractive for the automatic and the newly popular CNG trims, too:
The price cut is more than just a reduction in the initial payment; it offers a compelling opportunity for strategic buying.
Many buyers often compromise on a higher trim like ‘Creative’ or ‘Fearless’ due to budget constraints. The GST 2.0 price drop fundamentally changes this equation. The money you save on a mid-level trim is often enough to bridge the gap to a higher, feature-rich variant.
Since the GST reduction directly lowers the ex-showroom price, the principal amount you borrow for a car loan is also reduced. Even a saving of ₹1,00,000 on the ex-showroom price can significantly lower your monthly Equated Monthly Installment (EMI) over a typical five to seven-year loan period. This increases long-term affordability. For more details on calculating your new EMI, you can check out a financial planning resource like a reliable online EMI Calculator.
The Tata Nexon already holds a strong reputation for its build quality, driving dynamics, and the highest safety rating in its class. With this revised, lower price point, its value proposition against rivals like the Mahindra XUV 3XO and Hyundai Venue has dramatically improved, making it the most irresistible package in the segment.
The market is already reacting strongly to these cuts. Tata Motors’ record sales month indicates a surge in demand, which may lead to extended waiting periods for popular variants.
No. Electric Vehicles (EVs) already enjoyed a highly concessional GST rate of 5%, which remains unchanged in the new GST 2.0 reforms. The price drop is primarily for internal combustion engine (ICE) vehicles (Petrol, Diesel, CNG) in the sub-4-meter segment.
The highest reduction is typically seen on the top-end diesel automatic (AMT) variants, like the Fearless Plus PS Dark Edition 1.5L Diesel AMT, which has seen a cut of up to ₹1.55 Lakh (Ex-Showroom).
The revised GST rates, and consequently the new prices for the Tata Nexon, became effective from September 22, 2025, across India.
The GST reduction directly lowers the ex-showroom price. Since the final on-road price is calculated based on the ex-showroom price plus RTO, Insurance, and other charges, the final on-road price is also lower, though the absolute reduction amount will vary slightly by state.
The price revision applies to new cars billed after September 22, 2025. It affects the currently sold and listed variants of the latest-generation Nexon. Older, discontinued models are not impacted.
The introduction of the Tata Nexon Post GST 2.0 Price is a game-changer. It has successfully made India’s most trusted compact SUV significantly more accessible, putting a safer, more feature-rich vehicle within the reach of countless families.
With potential savings reaching up to ₹1.55 Lakh, there has never been a better time to invest in the Nexon’s blend of safety, style, and performance. Don’t wait for the festive rush to pass—seize this economic advantage while the variant of your choice is still readily available.
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