GST price cut makes festive season cheerful: These 3 sub-compact sedans become more affordable
With the GST 2.0 effective from September 22, sub-compact sedans in India have become cheaper, which could propel a boost in sales in this segment.
The sub-compact sedans, as well as sedans at large, have been witnessing a slumping sales graph over the last few years. This is mainly due to the rising dominance of the utility vehicles, especially SUVs and crossovers. The trend is not exclusive to the Indian passenger vehicle market, but across the world. The sedan market share in the Indian passenger vehicle market has witnessed a significant decline in the last couple of years.
While the overall sedan segment contracted in FY25, with some mass-market models seeing declines of more than 30%, a few models like the Maruti Suzuki Dzire and Volkswagen Virtus showed marginal growth, bucking the broader trend. In this slump story of sedans, other factors, such as the affordability crisis and increased cost of ownership, also played pivotal roles. In this process, while the overall passenger vehicle market grew, sedans lost their ground.
With the price cuts announced by the automakers, under the GST 2.0 regime that kicked in on September 22, the hatchback segment is expecting a major rebound in sales numbers. At the same time, the sub-compact sedan and mid-size sedan categories are likely to register a sales uptick. While SUVs have been engulfing other segments, there are still many consumers who like sedans because of their premium appeal, as well as a comfortable driving and riding experience on offer.
If you love sedans and are looking to upgrade to the sub-compact sedan segment, here is the information you should know
Maruti Suzuki Dzire
Maruti Suzuki Dzire is undoubtedly the segment leader in the sub-compact sedan space of the Indian passenger vehicle market. Despite the strong headwind for the sedan category, the Dzire has been able to buck the trend to some extent. The Maruti Suzuki Dzire is popular in the private buyer segment, while it dominates the cab segment as well. Practicality, comfort, and value for money are some of the key factors that have been propelling the sales of this sedan. The latest generation model comes with a 5-star GNCAP safety rating and a host of premium features, which further enhance its appeal. The sedan received an 8.61% price cut, ranging up to ₹87,700. With this, the sedan is now available at a starting price of ₹625,600 (ex-showroom).
Hyundai Aura
The Hyundai Aura is the significantly revamped version of the Hyundai Xcent. The Aura is the South Korean automaker's effort to grab a chunk of the sub-compact sedan market, which gets more traction from fleet operators than private buyers nowadays, owing to the low appeal of these cars among consumers, following the sharp rise of SUVs. However, with the GST price cut, the segment may see a slight rise in sales, as there is still a certain set of buyers who seek to upgrade their cars to an affordable sedan from a small hatchback. The sedan has received a price cut of up to ₹76,316, which means the effective starting price of the Aura is now ₹774,760 (ex-showroom).
Honda Amaze
The Honda Amaze is the second-best-selling product in its segment after the Maruti Suzuki Dzire. This Japanese sub-compact sedan received its latest generational avatar in the recent past, which comes with significant design and feature updates. This effort ramped up the sedan's competitiveness against the Maruti Suzuki Dzire. The automaker sells both the second-generation and third-generation Amaze in India. The second-generation Honda Amaze received a price cut of up to ₹72,800, while the third-gen model fetched a price cut of up to ₹95,500, depending on the variants.
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