In a significant move for Indian car buyers, Honda has revealed plans to lower the prices of its vehicles in response to the updated GST rates, effective from September 22, 2025. Joining the likes of Tata Motors, Mahindra, and Hyundai, the Japanese automaker is committed to passing on the full benefits of the revised tax structure to its customers. With a compact lineup of just three models, Honda remains a niche player in Indiaโs competitive automotive market, but these price reductions could boost its appeal.
Price Reductions Across Hondaโs Lineup
Hondaโs portfolio in India includes the second-generation Amaze, third-generation Amaze, Honda Elevate, and Honda City. Each model will see notable price cuts, reflecting the new GST rates. Hereโs a breakdown of the reductions:
- Second-Generation Honda Amaze: This compact sedan, available in two variants priced at โน7,62,800 and โน8,52,600 (ex-showroom Delhi), will see a price drop of up to โน72,800.
- Third-Generation Honda Amaze: Offered in six variants with prices ranging from โน8,09,900 to โน11,19,900 (ex-showroom Delhi), this model will benefit from a reduction of up to โน95,500.
- Honda Elevate: Competing in the premium SUV segment against rivals like the Hyundai Creta, the Elevate is available in nine variants, priced between โน11,91,000 and โน16,73,000 (ex-showroom Delhi). It will see a price cut of up to โน58,400.
- Honda City: A long-standing favorite in the premium sedan category, the City comes in eight variants, priced from โน12,38,000 to โน16,64,900 (ex-showroom Delhi). Honda plans to reduce its prices by up to โน57,500.
The Honda City also offers a hybrid variant, the City e:HEV, priced at โน19,89,990 (ex-showroom Delhi). However, no specific price reduction has been announced for this electrified model, as hybrid vehicles continue to be taxed at the same rate as conventional internal combustion engine (ICE) cars under the new GST structure.
Revised GST Rates Driving the Change
The price reductions stem from the Indian governmentโs recent GST 2.0 reforms, which adjust tax rates for automobiles. Currently, both Amaze models are taxed at 29% (including a 1% Compensation Cess), but starting September 22, 2025, this will drop to 18%. The rest of Hondaโs lineup, including the Elevate and City, will see their GST rate reduced from 45% (including a 17% Compensation Cess) to 40%. These tax cuts enable Honda to lower prices, making its vehicles more affordable for Indian consumers.
Hondaโs Position in the Indian Market
Hondaโs presence in India is modest compared to larger players, but its vehicles have carved out a loyal following. The Amaze caters to buyers seeking affordable, reliable sedans, while the Elevate targets the growing demand for premium SUVs. The Honda City, once a market leader, has seen declining sales due to the rising popularity of SUVs over sedans. By implementing these price cuts, Honda aims to attract cost-conscious buyers and strengthen its foothold in a highly competitive market.
No Relief for Hybrids
While the GST reduction benefits most of Hondaโs lineup, hybrid vehicles like the City e:HEV are excluded from tax relief. The Indian government has maintained its stance of taxing hybrids at the same rate as non-electrified ICE vehicles, potentially limiting their affordability compared to fully electric or traditional petrol/diesel models.
Also Read – Hyundai Unveils Creta Electric, i20, and Alcazar Knight Editions in India
A Strategic Move for Growth
Hondaโs decision to pass on the full GST benefits reflects its commitment to customer satisfaction and market competitiveness. With these price reductions, the automaker hopes to reinvigorate interest in its offerings, particularly in the compact sedan and premium SUV segments. As the Indian automotive market continues to evolve, Hondaโs timely response to the GST reforms could position it for stronger growth in 2025 and beyond.
