Volvo India price cut headlines the GST 2.0 impact, with the XC60 and XC90 getting actual numbers ahead of the festive season. The headline number is clear: up to ₹6.92 lakh off, starting September 22. Why it matters: lower ex-showroom prices can mean stronger demand and flagship luxury SUVs within reach for more buyers.

Why prices are falling under GST 2.0

So, why the sudden price drop? The reason lies in a new tax policy. Under the new GST 2.0 regime, the government has simplified the tax structure for large cars and SUVs. By removing a special ‘compensation cess,’ the total tax burden on these vehicles has fallen from a hefty 45-50% down to a much simpler 40%. This is the primary reason why these luxury vehicles are now more affordable. This is timed for September 22 rollout, coinciding with festive season and making premium models cheaper by a big margin. In short, fewer slabs and no cess means lower prices.

New XC60 and XC90 prices

The new pricing is a significant change. The XC60, which previously retailed at ₹71,90,000, now costs ₹67,10,667, a drop of nearly ₹4.8 lakh. Meanwhile, the flagship XC90, with a previous price tag of ₹1,03,89,890, sees the biggest reduction of ₹6,92,660, bringing its new price to ₹96,97,240. These are effective from September 22 and Volvo has said battery electric models will retain current pricing as EV GST is already 5%. For those tracking timing, these cuts are pan India from the date the new regime kicks in.

• XC60 new price: ₹67,10,667 (cut of ₹4,79,333)
• XC90 new price: ₹96,97,240 (cut of ₹6,92,660)
• Effective date: September 22, 2025

Festive offers and what’s unchanged

Volvo is offering the GST pass through with festive offers under a “Double Festive Delight” umbrella to drive conversions, as mentioned in brand comms and coverage. EVs like EX40/EC40 will remain at existing 5% GST slab so no direct price change on those models under this reform. For buyers, that means biggest immediate savings are on the ICE SUVs that are the core of Volvo’s premium portfolio.It’s industry wide, all luxury brands are passing on the benefits across sedans and SUVs to stay competitive. Reports of reductions from Mercedes-Benz and BMW too, so expect more list price updates as brands align to 40% slab and try to capture the pent up demand.

Also read: Tata Motors price cut after GST reset: Nexon down up to ₹1.55 lakh, Safari sees hefty drop

Conclusion

n a nutshell, for luxury car buyers in India, the festive season just got a lot more exciting. With the new prices taking effect on September 22, the Volvo XC60 and XC90 are set to become formidable competitors against their German rivals, offering a compelling blend of Swedish luxury, safety, and now, a significantly more attractive price tag.