Market Report
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Tax cut in India to drive car sales higher
No. 35 | 29th September 2025
The sales tax on cars in India has been reduced from 22 September after India simplified its Goods and Services Tax (GST). For small cars, the tax has been cut to 18% from 28% plus a 1-3% levy. For mid-sized cars and SUVs, the GST has been reduced to a flat 40%, from 28% plus a levy of 20-22%.
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