On September 7, 2025, MG Motor India unveiled significant price reductions for its internal combustion engine (ICE) SUVs, aligning with the Indian government’s newly implemented GST 2.0 framework. The company has committed to transferring the entire tax benefit to customers, ensuring that all bookings made on or after this date reflect the updated pricing. This strategic move affects MGโs popular SUV lineup, including the Astor, Hector, and Gloster, while electric vehicle (EV) prices remain unchanged due to the steady 5% GST rate on EVs.
A Customer-Centric Approach to GST 2.0 Benefits
Vinay Raina, Chief Commercial Officer at JSW MG Motor India, emphasized the importance of this initiative: โThe governmentโs GST rationalization is a forward-thinking step that makes car ownership more affordable and boosts buyer confidence. By fully passing on these tax savings to our customers, we aim to enhance the value proposition of our SUVs and make them more accessible to Indian buyers.โ
Price Reductions Across MGโs SUV Lineup
- MG Astor: As MGโs entry-level SUV, the Astor now benefits from a price cut of up to โน54,000. Previously taxed at 45%, it has been reclassified under the new 40% GST slab, making it a more compelling option in the compact SUV segment.
- MG Hector: Both petrol and diesel variants of the Hector see substantial reductions, with prices dropping by as much as โน1.49 lakh. The Hector, once subject to 45% and 50% GST rates for its petrol and diesel models respectively, now enjoys the unified 40% tax bracket.
- MG Gloster: The flagship Gloster SUV witnesses the most significant reduction, with prices slashed by up to โน3.04 lakh. Previously categorized under the 50% luxury and sin goods tax slab, the Gloster now falls under the revised 40% GST cap, making this premium SUV more attainable.
Raina further noted, โWith the festive season approaching, weโre focused on making our SUVsโAstor, Hector, and Glosterโmore appealing and affordable. This initiative goes beyond cost savings; itโs about building trust and encouraging more customers to join the MG family.โ
Broader Industry Trends and MGโs EV Strategy
The introduction of GST 2.0 has prompted several automakers, including Hyundai, Toyota, Renault, Nissan, Skoda, and luxury brands like Mercedes-Benz and Audi, to lower prices across their portfolios. MG Motor India, however, has kept the pricing of its electric modelsโComet and Windsorโunchanged, as the government has retained the 5% GST rate for EVs. Additionally, MGโs premium electric offerings, the Cyberster and M9, sold through exclusive MG Select dealerships, remain unaffected by the tax reform.
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Positioning for Festive Season Success
By aligning with the governmentโs GST 2.0 initiative, MG Motor India is strategically positioning itself to capitalize on the festive seasonโs increased demand. The price reductions not only make MGโs SUVs more competitive but also reinforce the brandโs commitment to delivering value and fostering long-term customer loyalty in the Indian market.
