New Delhi- Kia India on Monday announced a major price cut across its internal combustion engine (ICE) lineup, passing on the full benefit of the recent Goods and Services Tax (GST) reduction to customers. Effective September 22, prices will drop by as much as ₹4.48 lakh.
The move follows the Centre’s decision to slash GST on cars from 28% to 18%, aimed at making vehicles more affordable and boosting mobility ahead of the festive season.
The biggest reduction will be seen in the Kia Carnival, with prices down by ₹4,48,542. Other models will also see significant cuts, including the Syros (₹1,86,003), Sonet (₹1,64,471), Carens Clavis (₹78,674), Seltos (₹75,372), and Carnes (₹48,513).
The GST Council recently introduced a simplified three-tier structure — 5% and 18% as the primary slabs, along with an additional 40% slab for sin goods and ultra-luxury items. This replaces the previous four-tier system of 5%, 12%, 18%, and 28%, and came into effect from the first day of Navratri, September 22.
Welcoming the reform, Kia India MD and CEO Gwanggu Lee said: “We welcome the Government of India’s visionary citizen-centric reforms to reduce GST on passenger vehicles. This transformative measure makes vehicle ownership more affordable for consumers and will accelerate growth in the automotive sector. In line with this vision, we are proud to pass on the full benefit of the GST rate reductions to our customers.”
The Kia chief added that the reform not only simplifies the tax structure but also reflects the government’s commitment to sustainable economic growth and innovative mobility solutions.
Other automakers, including Tata Motors, Mahindra & Mahindra, Renault India, and Hyundai India, have already announced similar price reductions.
Prime Minister Narendra Modi had earlier described the new GST reforms as a “Diwali gift” during his Independence Day address.
With inputs from IANS