loader2
Login Open ICICI 3-in-1 Account
Text Size
Text to Speech
Color Contrast
Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Maruti Suzuki sets new benchmarks with price cuts far exceeding GST benefits

ICICIdirect Research 19 Sep 2025 DISCLAIMER

Following the GST rate cut, Maruti has announced sweeping price reductions across its vehicle portfolio, going above and beyond the GST-mandated cuts and outpacing peer brands.
Entry-level models such as the S-Presso and Alto K10 see the steepest cuts, with ex-showroom prices lowered by up to ₹1.30 lakh, translating into savings of 13–21% across variants, versus 8–10% reductions by competitors.
Mid-segment models including the Swift, Baleno, WagonR, and Fronx witness reductions in the range of 9–13%, further enhancing affordability and reinforcing Maruti’s leadership.
While premium offerings like the Grand Vitara, Jimny, XL6, and Brezza have received moderate cuts of 3–8%.
On an average, Maruti has trimmed prices by ~9% across its lineup, with the highest benefits accruing to small cars, reinforcing affordability for mass-market segment.
Maruti Suzuki sees hatchbacks as the gateway to first-time buyers moving from two-wheelers to four-wheelers. With total 2W active count on Indian roads (population) pegged at 20 crores plus vehicles compared to around 4 crores plus 4Ws, the company aims to accelerate switch from 2-W to 4-Ws through its popular entry-level models.
With entry-level cars now starting below ₹3.7 lakh (ex-showroom), Maruti is poised to gain among rural and first-time buyers, while offering 2-W owners a strong incentive to upgrade.
With macro-economic triggers in term of rationalisation of income tax rate, GST rate cut and 8th pay commission roll-out, amidst optimism around upcoming festive demand we remain positive on the stock with a BUY rating and target price of ₹17,160.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere