Honda Cars India Ltd. has officially announced that it will pass on the full benefit of the GST reform (GST 2.0) to its customers. From 22nd September 2025, revised tax slabs come into effect, resulting in lower ex-showroom prices for several of its popular models. (This aligns with the government’s revised tax regime for passenger vehicles under certain engine and size limits.)
Honda’s Vice President of Marketing & Sales, Mr. Kunal Behl, said that the reform is being welcomed as it will make cars more accessible just ahead of the festive season. He urged customers to book early to avail the combined benefit of the GST reduction + current festive offers.
Here’s how much you can save model-wise, and what it means for buyers.
Model-wise Savings under GST 2.0 for Honda Cars
Honda Model | Estimated Price Reduction (₹) | What Impacts / Notes |
---|---|---|
Amaze (3rd Generation) | Up to ₹95,500 | This is the biggest cut among Honda’s models, since Amaze is a sub-4 metre sedan and now benefits more under the new slab. |
Amaze (2nd Generation) | Up to ₹72,800 | Second-gen Amaze also gets a large reduction though variant-wise savings may vary. |
City | Up to ₹57,500 | Price drop for Honda City, particularly petrol variants that fall under the revised tax bracket. |
Elevate | Up to ₹58,400 | The Elevate SUV-segment model gets a similar level of savings as City. |
What’s Changed Under GST 2.0
- Cars that are smaller than 4 metres in length and have petrol/diesel engines under certain displacement limits are now taxed at a lower GST rate (around 18%) instead of earlier higher rate + cess.
- For slightly larger vehicles or those above specified engine size / features thresholds, some tax cuts are modest but still noticeable.
- Effective date for these changes is 22nd September 2025, which means bookings & registrations from that date will use the revised prices.
What This Means for Buyers
- The price reductions are ex-showroom savings; on-road (with insurance, registration, taxes, etc.) actual savings will vary by city.
- Buyers looking for Amaze get the maximum bang under these reforms among Honda’s mass models. The savings bring the Amaze closer in price to rivals or slightly older models in pre-GST era.
- For premium models like City & Elevate, the cuts are moderate but still helpful, especially when combined with discount offers from dealerships.
- The timing is with the festive season, so Honda is also banking on higher demand. Booking now means leveraging both the new lower pricing and any existing incentives or dealership offers.
Key Things to Check Before Booking
- Variant: Savings may differ depending on variant (fuel type, features) because only certain configurations fully benefit from the new slab.
- Engine / Size: Petrol engines < certain displacement & cars under certain dimensions gain the most. Hybrids or larger engine / higher trim levels may have limited benefit.
- Hidden Costs: On-road price includes insurance, RTO charges, etc., so you’ll want to compare full costs rather than only ex-showroom savings.
- Dealer Stock & Delays: Given the GST reduction timing and festive demand, some dealerships may have delayed deliveries. Booking early is recommended.
- Resale / Demand: Reduced prices may shift demand patterns; older models or non-benefiting trims might lag.
Verdict
Honda’s move to reduce prices by up to ₹95,500 under the new GST regime makes several of its models significantly more affordable, especially the Amaze line. For many buyers, this could be the perfect window to upgrade or buy a new car owing to the combined benefit of the tax cut + festival offers.
For those eyeing the City or Elevate, while the discounts are smaller compared to the Amaze, they are still meaningful. Overall, it’s a strong gesture by Honda aligning with policy change, and one that benefits consumers visibly.