Citroën India Passes on Full GST Benefits, Making Cars More Affordable
Citroën India has announced that it will pass on the full benefits of the recent GST 2.0 reforms to its customers, making its range of cars more affordable. The new prices will be effective from September 22, 2025. This move follows the government’s decision to simplify the tax structure, which has led to a reduction in the total tax liability on certain vehicle categories.
While the GST rate for cars under four meters has been reduced to 18%, larger SUVs and luxury cars will now be under a flat 40% GST slab, with the removal of the cess component. This change results in a significant price drop for many models across the industry, including Citroën’s portfolio.
New Prices and Benefits on Citroën Models
The GST 2.0 reforms are expected to lead to a significant price drop across Citroën’s lineup, with benefits on both the ex-showroom and on-road prices.
- Citroën Basalt X: The newly launched coupe SUV will now start from a price of ₹7.95 lakh (ex-showroom), a difference of approximately ₹37,000 compared to its previous price.
- Citroën C3 Aircross: This premium compact SUV is expected to see a price drop of up to ₹1.15 lakh on select variants.
- Citroën C5 Aircross SUV: The flagship model will receive a price cut of up to ₹2.67 lakh.
- Citroën C3: The C3 hatchback is also expected to get a price drop of around 9% on its on-road price.
- Citroën ëC3: As an electric vehicle, the ëC3 already has a GST rate of 5%. However, the simplification of the tax structure on components and other charges may also contribute to some price benefits.
Reductions for Citroën’s key models after the GST 2.0 reforms.
Citroën: Price Reduction After GST 2.0 (Ex-showroom Delhi)
| Model | Old Ex-Showroom Price | Price Reduction After GST 2.0 |
| Citroën C3 | ₹5.25 lakh | Up to ₹98,000 |
| Citroën Basalt X | Est. ₹8.32 lakh* | Up to ₹37,000 |
| Citroën C3 Aircross | Est. ₹8.62 lakh | Up to ₹1.15 lakh |
| Citroën C5 Aircross SUV | ₹39.99 lakh | Up to ₹2.67 lakh |
Note: The old price for the Basalt X is an estimate based on the announced price reduction and the new starting price. The prices for the C3, C3 Aircross, and C5 Aircross are based on their respective starting prices at the time of the GST change.
Citroen New Prices after GST Cut
Citroen Cars On-Road Prices to Reduce After New GST Cut
The reduction in GST rates will directly impact the on-road prices of Citroën cars. The on-road price includes the ex-showroom price, road tax, and insurance. The decrease in the ex-showroom price will lead to a lower road tax, which is calculated as a percentage of the ex-showroom price. Additionally, a lower ex-showroom price also reduces the vehicle’s Insured Declared Value (IDV), resulting in a lower insurance premium.
FAQs on Citroën GST Price Reduction
1. Why are Citroën cars getting a price cut? Citroën is passing on the full benefits of the GST 2.0 reforms, which have reduced the overall tax burden on vehicles.
2. When will the new prices for Citroën cars be effective? The revised prices will be effective from September 22, 2025.
3. Which Citroën models are getting a price cut? The price reductions apply to the Citroën C3, C3 Aircross, C5 Aircross, and the newly launched Basalt.
4. What is the maximum GST benefit on a Citroën car? The maximum GST benefit is up to ₹2.67 lakh, applicable to the Citroën C5 Aircross SUV.
5. What is the GST benefit for the Citroën C3 Aircross? The Citroën C3 Aircross is expected to see a price drop of up to ₹1.15 lakh on select variants.
6. What is the new starting price of the Citroën Basalt X? The new starting price for the Citroën Basalt X is ₹7.95 lakh (ex-showroom), a price drop of about ₹37,000.
7. How will the on-road price of the Citroën C3 change? The on-road price of the Citroën C3 is expected to drop by approximately 9%.
8. What was the old GST rate on cars? Previously, the GST rate on cars over 4 meters was 28% with a cess of up to 22%, making the total tax as high as 50%.
9. What is the new GST rate for cars like the Citroën C3 and C5 Aircross? The C3, being a sub-4-meter car, now falls under the 18% GST slab. The C5 Aircross, a larger SUV, is now under a flat 40% GST slab, with the cess removed.
10. Why is the Citroën ëC3 not getting a significant price cut? The GST rate on electric vehicles remains unchanged at 5%, so the price benefits for the ëC3 may be minimal, likely coming from reduced costs of parts and components.
11. Will the price cut affect the on-road price? Yes, the on-road price will be lower as the reduced ex-showroom price will also lead to a decrease in road tax and insurance costs.
12. Is the price reduction a permanent change? Yes, the price change is a result of a permanent GST reform and is not a limited-time offer.
13. What is GST 2.0? GST 2.0 refers to the new reforms that aim to simplify the tax structure by creating a uniform slab for most cars and eliminating the cess component.
14. What are the key features of the new Citroën Basalt X? The new Basalt X comes with updated features such as ventilated front seats, a full-front LED setup, cruise control, and a new interior theme.
15. How does the new GST structure affect luxury cars? Luxury cars and large SUVs are now taxed under a flat 40% slab, providing clarity and often resulting in lower prices compared to the previous structure.
16. How does this GST change benefit Citroën’s electric portfolio? While the GST on EVs remains 5%, the simplification of the tax on components and parts (now at 5%) could help reduce production costs and potentially be passed on to the customer.
17. What is the purpose of the new GST reforms? The government’s GST reforms aim to revive demand in the auto industry and make popular models more affordable for buyers.
18. What about the pricing of parts and components? Under the new GST reforms, the cost of parts and components will be placed in a 5% slab instead of the previous 12%, which may bring down production costs.
19. What is the starting price for the Citroën C3? The starting price for the Citroën C3 is ₹5.25 lakh (ex-showroom).
20. What is the starting price for the Citroën C3 Aircross? The starting price for the Citroën C3 Aircross is ₹8.62 lakh (ex-showroom).
21. What is the starting price for the Citroën C5 Aircross SUV? The starting price for the Citroën C5 Aircross SUV is ₹39.99 lakh (ex-showroom).
23. How does the new GST affect cars over 4 meters in length? Cars over 4 meters in length, which used to have a total tax of 50%, will now see a reduction to 40%.
24. Will the price cut affect my car’s resale value? A reduction in the new car price can affect the resale value, but this is a long-term trend and is not exclusive to Citroën.
25. Are there other brands that have also announced GST benefits? Yes, other automakers like Volkswagen and Mercedes-Benz have also announced similar price benefits for their customers following the GST reforms.
27. How does the GST change impact the on-road price of a C5 Aircross? The on-road price of the C5 Aircross in Delhi is expected to drop by approximately 6% or about ₹2.8 lakh.
28. What is the difference between the old and new GST structure for large SUVs? The old structure had a total tax of 50% (28% GST + 22% cess), while the new one is a flat 40% GST.
29. What is the difference between the old and new GST structure for hybrid passenger vehicles? Strong hybrid vehicles that used to attract a total tax of 43% (28% GST + 15% cess) will now have a GST of 40%.
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