The diesel cars with highest GST cuts are making headlines as buyers rejoice at the substantial savings. With India’s GST revision (also called GST 2.0) slashing tax rates for sub-4m vehicles, several diesel models have seen dramatic drops in their ex-showroom prices. This list highlights the Top 5 diesel cars with highest GST cuts, showing how much buyers can save, model by model.
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Why Diesel Cars Got Big GST Benefits
From 22 September 2025, the Indian government implemented the new GST 2.0 tax regime. Under this, smaller cars (diesel ≤ 1,500 cc, petrol ≤ 1,200 cc, length ≤ 4m) now attract 18% GST (no cess), down from earlier 28% + cess structures.
This change means that many sub-4m SUVs and compact diesel cars have had their prices slashed. Automakers have been quick to pass on the full benefit to customers across many variants.
In the segment of diesel cars, especially sub-4m SUVs, several models saw some of the largest absolute price drops. Let’s see which ones topped the list.
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Top 5 Diesel Cars with Highest GST Cuts
Here are the top 5 diesel models that recorded the largest GST-driven price reductions:
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Detailed Insights on Each Model
1. Kia Syros (Diesel variants)
Kia’s Syros diesel variants saw some of the steepest reductions. The top variant (HTX Plus (O) AT in diesel) benefited from a cut of around ₹1,86,000.
This puts Syros at the top of the list among diesel SUVs in terms of absolute tax benefit.
2. Kia Sonet (1.5L Diesel)
Kia adjusted Sonet’s pricing aggressively. Diesel trims recorded cuts between ~ ₹1,01,000 and ₹1,64,000 across various variants.
For example, the GTX+ DT 6AT diesel saw one of the highest reductions.
3. Mahindra XUV 3XO (Diesel)
XUV 3XO’s diesel variants (AX7 / AX7L) enjoyed price cuts in the range of ₹1,04,000 to ₹1,56,000.
This is a strong move, considering XUV 3XO is positioned as a modern compact SUV with multiple powertrain options.
4. Tata Nexon (Diesel)
Tata Motors passed along benefits to its diesel Nexon line. The diesel manual (MT) variants saw cuts up to ₹1,47,000, roughly an 11% reduction.
Even the diesel AMT trims saw reductions between ₹1,16,000 to ₹1,54,000.
5. Mahindra Thar (Diesel)
The iconic Mahindra Thar also saw meaningful relief. The 2WD Diesel LX variant delivered a cut of ~ ₹1,35,400.
While Thar’s premium variants may see smaller relative cuts, this makes its base trims more accessible.
What the Cuts Mean for Buyers & Market
- Better Affordability
Buyers who had been delaying diesel SUVs due to high tax burdens now have a compelling reason to act. These diesel cars with highest GST cuts are more accessible than ever. - Segment Advantage
Many top models in sub-4m SUVs now fall into a sweet spot of performance, utility, and lower taxation. Diesel enthusiasts can now enter this segment at a lower cost. - Competitive Pressure
Automakers that haven’t passed full benefits may face pressure from rivals. Models not offering full cut risk being undercut by these aggressive discounts. - Increased Sales Momentum
With the festive season approaching, these cuts may stimulate demand. Dealers are likely already seeing higher inquiries. - Variant-level Variation
While we list maximum cuts, not all trims of a model will see the same benefit. Buyers should check with local dealers for variant-wise pricing.
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Tips for Buyers Considering These Diesel Cars
- Always check variant-wise price after GST; the biggest cuts usually apply to mid or high trims.
- Consider fuel efficiency & running cost, as diesel still has long-distance advantages.
- Factor in features – sometimes a variant with more features but slightly lower cut may offer better value.
- Watch for dealer-level discounts or finance offers on top of GST cuts.
- Cross-compare with petrol / electric options, especially in cities where diesel may face regulations later.
Conclusion
Among diesel cars with highest GST cuts, models like Kia Syros, Kia Sonet, Mahindra XUV 3XO, Tata Nexon, and Mahindra Thar stand out. These cuts, in the range of ₹1.3–1.9 lakh, bring previously premium diesel SUVs into more affordable territory.
For Indian buyers looking for ruggedness, torque, and long-range capability, these models now represent a sweet-spot opportunity under the revised tax regime.