Tata Nexon: The Indian car market is buzzing with excitement after the government’s major GST reforms for 2025. With the Goods and Services Tax (GST) on small and mid-sized cars reduced from 28% to 18%, several popular vehicles are set to become significantly more affordable. Among them, the Tata Nexon price drop stands out, as this best-selling compact SUV will see one of the highest reductions, making it even more attractive for buyers.
Key Highlights of GST Rate Cut
- The GST Council has announced a 10% reduction in GST for small and medium-sized cars.
- New GST rate for most cars: 18% (earlier 28%).
- Compact SUVs like the Tata Nexon (under 4 metres in length) will get the maximum benefit.
- Larger SUVs, including the Hyundai Creta, will also see a price cut, but the reduction will be slightly lower.
- Luxury SUVs now fall under a 40% tax slab, still lower than the previous 50% taxation structure.
Tata Nexon Price Drop After GST Cut
The Tata Nexon, one of the most popular compact SUVs in India, will see a significant reduction in price once the new GST rates are implemented.
- Approximate Price Reduction: ₹80,000
- Reason: The Nexon is under 4 metres in length and has engines within the small/medium car category, qualifying for the maximum GST relief.
This means prospective buyers can now own the Nexon at a much lower cost, making it an even more attractive choice in the highly competitive SUV market.
Hyundai Creta vs Tata Nexon Price Drop – Who Benefits More?
While both SUVs benefit from the GST reform, the difference lies in size and tax slabs.
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- Tata Nexon
- Length: Below 4 metres
- GST Advantage: Higher (falls in the small SUV category)
- Price Reduction: Around ₹80,000
- Hyundai Creta
- Length: Above 4 metres
- GST Advantage: Moderate (larger SUVs taxed differently)
- Price Reduction: Around ₹55,585
Buyers of smaller SUVs like the Nexon enjoy greater savings compared to those opting for larger SUVs like the Creta.
Tata Nexon – Features at a Glance
The Nexon has always been a feature-rich SUV in the compact segment. With the price drop, its value-for-money appeal has only increased.
- Exterior Highlights
- Stylish coupe-like SUV design.
- LED headlamps with DRLs.
- Bold front grille and muscular stance.
- Interior Comfort
- Premium upholstery with ample cabin space.
- Large infotainment system with Android Auto & Apple CarPlay.
- Automatic climate control.
- Spacious boot and practical cabin storage.
- Safety Features
- 5-star GNCAP safety rating.
- Multiple airbags.
- ABS with EBD.
- Electronic stability program (ESP).
Tata Nexon – Engine & Performance
Apart from the price advantage, the Nexon continues to offer strong engine options, catering to both petrol and diesel buyers.
- 1.2-litre Turbo Petrol Engine
- Power: 120 bhp
- Torque: 170 Nm
- Transmission options: Manual & Automatic
- 1.5-litre Diesel Engine
- Power: 110 bhp
- Torque: 260 Nm
- Transmission options: Manual & AMT
The Nexon is also known for its 5-star Global NCAP safety rating, making it one of the safest compact SUVs in its class.
Why the GST Cut Matters for Buyers
This tax reform is a game-changer for middle-class and first-time SUV buyers. Here’s why:
- Lower EMI: A reduced on-road price means lighter monthly installments.
- Better Value: Nexon buyers get advanced safety and tech features at a more affordable cost.
- Market Shift: Smaller SUVs will likely see higher demand compared to mid-sized SUVs.
Current Tax vs New Tax
- Earlier Tax on Compact SUVs: 28% GST + 1–3% cess (approx. 29–31%)
- New Tax on Compact SUVs: 18% GST (flat, minimal cess)
- Overall Savings: Around 10–12% reduction in the final price.
Final Verdict
The GST rate cut is a huge win for SUV buyers, especially in the compact segment. The Tata Nexon benefits the most, with prices dropping by nearly ₹80,000, making it a more affordable, value-packed, and safer choice for families. While the Hyundai Creta also gets cheaper by around ₹55,585, the Nexon’s higher savings, strong performance, and 5-star safety rating give it a clear edge.
