New Delhi, Sept. 4 -- India's top automakers received a much-needed boost after the goods and services tax (GST) Council approved a 10% cut in taxes on small cars and commuter motorcycles, starting 22 September.

After income-tax relief and lower interest rates failed to lift consumer demand, the government is betting on GST rationalisation to make compact cars and commuter bikes more affordable. The cut could ease affordability pressures for millions of buyers, while higher levies on premium bikes and SUVs rebalance the tax burden.

Cars smaller than four meters with engine capacity below 1500cc (diesel) and 1200cc (petrol) will now attract 18% GST without cess, covering models like Tata Altroz, Maruti Swift, Hyundai i10, i20, and Renaul...