Jaguar Land Rover (JLR) India has taken a decisive step in making its luxury SUVs more accessible to Indian buyers. Following the rollout of GST 2.0, announced during the 56th GST Council meeting on September 3, 2025, the automaker has confirmed substantial price cuts across its internal combustion engine (ICE) portfolio.
The new tax framework removes the earlier compensation cess and rationalises the overall tax incidence on premium vehicles. As a result, JLR has passed on the full benefit of these changes to customers, with reductions as high as ₹30.4 lakh on select Range Rover models.
The price revision is already in effect and applies to all customers booking or purchasing from September 9, 2025 onwards.
Table of Contents
Why GST 2.0 Matters for Luxury Cars
India’s earlier tax regime placed luxury vehicles in one of the highest slabs, attracting 28% GST plus a compensation cess of up to 22%, making the effective tax burden close to 50%. This made luxury SUVs significantly more expensive compared to global markets.
The newly introduced GST 2.0 streamlines the tax structure. A uniform 40% GST rate now applies to premium passenger vehicles, eliminating the additional cess. This rationalisation is designed to boost demand in the luxury car segment, attract fresh investments, and create a level playing field among manufacturers.
For buyers, this translates directly into more affordable ex-showroom prices. For automakers like JLR, it’s a chance to grow their customer base and strengthen their presence in India.
Short Summary
Key Aspect |
Details |
|---|---|
Tax Reform |
GST 2.0: Uniform 40% GST on luxury cars, no compensation cess |
Price Cuts Announced |
Yes, across JLR ICE portfolio |
Range Rover |
₹4.6 lakh to ₹30.4 lakh reduction |
Defender |
₹7 lakh to ₹18.6 lakh reduction |
Discovery |
₹4.5 lakh to ₹9.9 lakh reduction |
Effective Date |
September 9, 2025 |
Official Website |
JLR India’s Official Response
According to Rajan Amba, Managing Director of JLR India, the move is a major boost for both customers and the luxury automobile industry:
“This tax reform is a welcome decision by the Government of India. It will make luxury vehicles more accessible, and we are pleased to pass on the entire benefit of GST 2.0 to our customers without delay.”
This approach ensures that JLR remains competitive against rivals like Mercedes-Benz, BMW, and Audi, all of whom are expected to announce similar reductions.
Model-Wise Price Cuts
JLR has officially shared the revised benefits for its most popular SUVs in India.
Model |
Reduction in Ex-Showroom Price |
|---|---|
Range Rover |
From ₹4.6 lakh to ₹30.4 lakh |
Defender |
From ₹7 lakh to ₹18.6 lakh |
Discovery |
From ₹4.5 lakh to ₹9.9 lakh |
The variation in price cuts depends on the specific variant and trim level. Higher-end configurations naturally see the biggest reductions.
Impact on Buyers
1. Greater Affordability
For prospective buyers, especially in metro cities, the reduction makes iconic SUVs like the Range Rover and Defender significantly more attainable. A saving of up to ₹30 lakh can be the difference between opting for a lower-spec model and upgrading to a higher trim.
2. Competitive Pricing
Luxury rivals will now face pressure to adjust pricing strategies. Since GST 2.0 applies across the board, JLR’s swift move to announce reductions places it ahead in market positioning.
3. Surge in Demand
Dealers expect a notable rise in enquiries and bookings. Waiting periods for certain high-demand models could lengthen as customers rush to take advantage of lower prices.
4. Long-Term Growth
Experts believe that GST 2.0, coupled with strong demand for premium SUVs in India, could trigger steady growth for the luxury car segment in the next two to three years.
Effective Date and Coverage
-
Effective from: September 9, 2025
-
Applies to: Entire ICE portfolio of Land Rover SUVs sold in India
-
Excludes: Electric models (these fall under a different GST regime)
-
Additional Costs: On-road prices will still include insurance, registration, state road tax, and optional add-ons, which are not covered by the GST reduction.
Frequently Asked Questions (FAQ)
Q1. What is GST 2.0?
A. It is the revised GST framework for vehicles, introduced in September 2025. It rationalises taxes on luxury cars by applying a flat 40% GST and removing additional cesses.
Q2. Which JLR models get price cuts?
A. The Range Rover, Defender, and Discovery all receive major ex-showroom price reductions.
Q3. Are the reductions applicable right now?
A. Yes. The new prices are effective for all purchases starting September 9, 2025.
Q4. Do these reductions cover electric vehicles?
A. No. The reductions apply to JLR’s ICE portfolio only. EVs follow a separate GST regime.
Q5. How much can buyers save?
A. Savings range from ₹4.5 lakh on entry-level Discovery variants to ₹30.4 lakh on top-end Range Rover models.
Q6. Does this affect on-road pricing?
A. Yes, indirectly. Ex-showroom prices have dropped, which lowers the base for calculating registration and other charges. However, state levies like road tax and insurance remain.
Conclusion
The rollout of GST 2.0 marks a turning point for India’s luxury car market. Jaguar Land Rover’s decision to pass on the full tax benefits sets a positive precedent for transparency and customer trust. With reductions as high as ₹30 lakh, aspirational buyers now have a stronger reason to consider models like the Range Rover, Defender, and Discovery.
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