The rollout of GST 2.0 has sent ripples across India’s automobile sector, and Honda Cars is no exception. For years, indirect taxation on cars has been a complex maze of excise duties, VAT, and cess, making pricing structures both inconsistent and difficult for buyers to understand. GST 2.0 has been introduced to further simplify the taxation system, correct earlier anomalies, and provide customers with the benefit of a unified tax regime.
For Honda, a brand known for its reliable sedans and SUVs, this update has translated into a noticeable price correction across popular models such as the Honda Amaze, Honda City, and the newly launched Honda Elevate. Buyers stand to save up to ₹95,500, depending on the model and engine configuration. This not only brings relief to prospective car buyers but also helps Honda strengthen its competitive edge in a crowded market where pricing often determines consumer choice.
In this blog, we’ll take a closer look at how GST 2.0 has reshaped Honda’s pricing, broken down by engine capacity and segment.
GST Impact on Honda Cars up to 1200cc and up to 4000mm
In the sub-4-metre, small-capacity engine space, Honda has two key offerings, the Honda Amaze and specific variants of the Honda City. These cars have traditionally attracted buyers who seek reliability and value, making price sensitivity extremely important.
With GST 2.0, the changes in this category may not be as steep as in the higher-end models, but the impact is still significant enough to draw attention. The general trend shows price drops in the range of a few thousand rupees to over ₹75,000, depending on the trim and variant.
The Honda Amaze, which sits as the entry-level sedan in the portfolio, now comes with reduced pricing, making it even more appealing to first-time car buyers.
Price Changes in Honda Cars (up to 1200cc and 4000mm)
| Car | Price Before GST Update | Price After GST Update | Difference |
| Honda Amaze (3rd generation) | ₹7.16 lakh | ₹6.99 lakh | -₹75,500 |
| Honda City | ₹11.71 lakh | ₹11.14 lakh | -₹57,500 |
Note: Prices are approximate ex-showroom figures.
This segment showcases Honda’s strategy of making its sedans more accessible, particularly in tier-2 and tier-3 cities, where affordability drives decision-making.
GST Impact on Honda Cars more than 1200cc and more than 4000mm
The bigger impact of GST 2.0 is visible in Honda’s larger sedans and SUVs, which house engines beyond 1200cc and stretch longer than 4000mm. Models such as the Honda City (higher trims), Honda Elevate, and Honda CR-V (for select stock units in India) benefit from significant price corrections.
- The Honda City petrol (1.5-litre) and diesel trims fall into this bracket, and customers now enjoy price reductions ranging between ₹35,000 and ₹60,000.
- The Honda Elevate, Honda’s newest compact SUV, has also been made more affordable, with benefits crossing ₹90,000 in select variants.
- For buyers seeking premium comfort, this pricing realignment makes larger Honda cars more competitive against rivals like Hyundai Creta, Kia Seltos, and Volkswagen Virtus.
Price Changes in Honda Cars (more than 1200cc and 4000mm)
| Car | Price Before GST Update | Price After GST Update | Difference |
| Honda City (1.5 Petrol) | ₹12.82 lakh | ₹12.20 lakh | -₹62,000 |
| Honda City (Diesel) | ₹13.71 lakh | ₹13.05 lakh | -₹66,000 |
| Honda Elevate (Select Variants) | ₹15.25 lakh | ₹14.30 lakh | -₹95,500 |
Note: Prices are approximate ex-showroom figures.
The Honda Elevate leads the pack with the steepest reduction of nearly ₹95,500, making it a highly attractive buy in its segment. On the other hand, the Honda City petrol and diesel variants also enjoy substantial benefits, bringing them closer in pricing to compact sedans while offering superior features.
Summary
Overall, GST 2.0 has been a positive development for Honda Cars in India. By simplifying tax slabs and correcting discrepancies, it has created a uniform pricing advantage across multiple segments.
- For entry-level buyers, the Honda Amaze is now more affordable, which could boost Honda’s sales in the sub-₹10 lakh bracket.
- For sedan enthusiasts, the Honda City becomes an even stronger contender, especially since competitors like Hyundai Verna and Skoda Slavia are also recalibrating their prices under the new GST regime.
- For SUV aspirants, the Honda Elevate’s significant reduction gives it a serious edge over rivals, potentially translating into stronger monthly bookings.
From a sales perspective, this price rationalisation is likely to work in Honda’s favour. Lower prices not only make Honda cars more attractive but also widen their reach to middle-class families, first-time buyers, and those upgrading from hatchbacks.
If demand picks up as anticipated, GST 2.0 may well serve as the push Honda needs to regain lost ground in India’s highly competitive auto market.
FAQs about GST Impact on Honda Cars
What is GST 2.0 and why does it matter for Honda cars?
GST 2.0 is the revised version of India’s Goods and Services Tax framework, designed to simplify tax rates and reduce disparities across vehicle categories. For Honda cars, it has resulted in price reductions of up to ₹95,500, making popular models more affordable.
Which Honda car has the highest price drop after GST 2.0?
The Honda Elevate has witnessed the biggest price correction, with select variants becoming cheaper by almost ₹95,500.
Has the Honda Amaze become cheaper after GST 2.0?
Yes, the Honda Amaze now costs around ₹17,000 less than before, making it one of the most budget-friendly sedans in the market.
How much has the Honda City price dropped after GST 2.0?
The Honda City petrol variants are cheaper by up to ₹62,000, while diesel variants see a reduction of around ₹66,000.
Will GST 2.0 make Honda cars more competitive against rivals?
Absolutely. With price corrections across Amaze, City, and Elevate, Honda now has a stronger chance of competing with rivals like Hyundai, Kia, Skoda, and Volkswagen in their respective categories.
Does GST 2.0 apply to all Honda cars?
It applies to all models currently being retailed in India. The impact, however, varies based on the car’s engine size and length category.
Is this the right time to buy a Honda car?
Yes, with GST 2.0 benefits factored in, prospective buyers can save significantly compared to pre-GST 2.0 pricing. This makes it an opportune time to invest in a Honda vehicle.
