Hyundai, Kia & MG Announce GST Benefit on Cars | Why Creta Buyers Get Lower Relief

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by

Himanshu
in

The Indian automobile industry is buzzing with updates as Hyundai, Kia, and MG Motor have officially announced GST benefits on selected cars. This decision comes after the government reduced cess on certain car categories, enabling manufacturers to pass on the tax relief to customers. While this is welcome news for SUV lovers, there’s a catch—buyers of the popular Hyundai Creta will get comparatively less benefit than other SUV buyers.

This article breaks down the details of the GST benefit, how much you can save brand-wise, and why the Creta falls short in terms of relief.

Why Automakers Are Offering GST Benefit? 🏷️

The Goods and Services Tax (GST) framework on automobiles has multiple slabs based on engine capacity, vehicle length, and body type. Recently, cess adjustments were made to lower the effective tax rate on midsize and large SUVs. As a result, carmakers like Hyundai, Kia, and MG are now passing on the savings to customers in the form of price cuts.

This move comes right before the festive season, making cars more attractive for buyers during events like Diwali, Dussehra, and Onam.

Brand-Wise GST Benefits Breakdown 🚘

The GST benefit isn’t uniform across all models. Let’s look at the approximate range of benefits buyers can expect:

BrandEligible ModelsApprox. GST BenefitHighlights
HyundaiCreta, Alcazar, Tucson₹15,000 – ₹80,000Creta buyers get lowest relief, Alcazar & Tucson fare better
KiaSeltos, Carens₹20,000 – ₹90,000Mid-size SUV buyers enjoy stronger discounts
MG MotorHector, Hector Plus, Gloster₹25,000 – ₹1,50,000MG Gloster gets the highest GST relief in the segment

Why Hyundai Creta Buyers Get Less Benefit? 🤔

The Hyundai Creta is one of the top-selling SUVs in India, but unfortunately, it falls under a different cess bracket due to:

  • Engine Capacity & Vehicle Size: The Creta’s specifications do not qualify for the maximum cess reduction compared to larger SUVs.
  • Pricing Structure: Being a mass-market vehicle, the GST savings translate into a smaller price cut.
  • Segment Focus: Automakers tend to pass higher benefits on larger, premium SUVs to attract customers who are more price-sensitive at that level.

Thus, while Creta buyers still enjoy some savings, they won’t get as much relief as Alcazar, Tucson, or MG Gloster buyers.

How This Impacts Car Buyers 🔑

  1. SUVs Become More Attractive: The mid-size and large SUV category is now more value-for-money.
  2. Higher Bookings Expected: Automakers anticipate a surge in demand during the festive season.
  3. Competitive Pricing War: Rival brands may launch additional discounts to stay competitive.
  4. Boost to MG Motor: With the biggest GST benefits, MG’s Hector and Gloster are expected to gain traction among buyers seeking luxury SUVs at reduced prices.

Festive Season Advantage 🎉

The timing of this announcement is no coincidence. With festive sales around the corner, automakers are:

  • Offering GST benefit + festive discounts together.
  • Partnering with banks for lower EMIs, exchange offers, and cashback.
  • Competing to lock in bookings before Amazon Great Indian Festival and Flipkart Big Billion Days effect spills into auto sales.

This means buyers can get double benefits—government-driven GST relief and dealer-driven festive discounts.

Expert Advice for Buyers 💡

  • Creta Buyers: While the GST cut is smaller, you can still negotiate for dealer-level festive offers to maximize savings.
  • Kia Seltos & Carens Buyers: Strong benefits combined with high demand—book early to avoid waiting periods.
  • MG Gloster Buyers: If you’ve been planning for a premium SUV, this is the right time as the GST benefit is the highest in the segment.

Final Word 🚀

The announcement of GST benefits by Hyundai, Kia, and MG is a major boost for car buyers in India. While Hyundai Creta buyers get relatively less relief, other SUVs like MG Gloster, Hector, Hyundai Alcazar, and Kia Seltos offer much larger benefits.

With the festive season just weeks away, this is the perfect opportunity to lock in the best deal. If you’re planning to buy an SUV, don’t wait too long—prices and offers may change once demand peaks.

👉 Bottom Line: Creta gives you savings, but bigger SUVs give you bigger benefits.