Vehicle prices have come down following reductions and rationalisation of GST and excise-related taxes, bringing relief to buyers and boosting demand in the auto market. Under the revised tax structure, the overall indirect tax burden on many categories of vehicles has been lowered, encouraging manufacturers to pass on the benefits through price cuts. Entry-level and mid-segment cars have seen the biggest relief, while electric vehicles continue to enjoy lower GST rates, making them more affordable. Several automakers have announced reductions in ex-showroom prices, saying the move is aimed at improving affordability and stimulating sales. Industry experts believe the tax relief will support higher vehicle sales, improve market sentiment, and help revive consumer demand amid rising living costs.
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