Despite the increase in GST on larger vehicles, the removal of the cess has brought substantial relief to both car buyers and manufacturers. This has directly impacted the prices of cars, leading companies to announce new prices for their models. Toyota has also announced that it will be passing on these benefits to its customers.
The Japanese company stated that prices of all its vehicles will be reduced following the new GST rates. The new prices will be effective from September 22, 2025, coinciding with the implementation of the new GST rates. The company has urged customers to confirm their bookings before the festive season to ensure timely delivery. Toyota India’s Vice President, Varinder Wadhwa, expressed gratitude to the Indian government for this historic reform, noting that it not only makes vehicles more affordable for customers but also strengthens confidence within the entire auto sector. The company anticipates that this move will boost demand, especially before the upcoming festive season.
| Model | Price Reduction |
| :——- | :————–: |
| Glanza | 85,300 |
| Taisor | 1,11,100 |
| Rumion | 48,700 |
| Hyryder | 65,400 |
| Crysta | 1,80,600 |
| Hycross | 1,15,800 |
| Fortuner | 3,49,000 |
| Legender | 3,34,000 |
| Hilux | 2,52,700 |
| Camry | 1,01,800 |
| Vellfire | 2,78,000 |
Price Cuts on Toyota Cars
Under this new announcement, the prices of several Toyota cars have been reduced. The Fortuner has seen the most significant benefit, with a price reduction of up to Rs 3.49 lakh. Following this, the premium variant Legender sees a reduction of up to Rs 3.34 lakh. The new prices for the Fortuner now start from Rs 36.05 lakh ex-showroom, while the Legender’s prices start from Rs 44.51 lakh ex-showroom.
New GST Impact on Taxes
The new GST has led to price reductions across almost all car segments. Small cars will now attract an 18% GST, down from the previous 28%. Prices will become cheaper by 5% to 13%. Larger cars will now be taxed at 40%. Previously, a higher tax was levied, combining 28% GST and cess. The overall tax burden has been reduced by 3% to 10%. Luxury brands such as Mercedes-Benz, Audi, BMW, and Jaguar Land Rover previously faced a 50% tax. Now, they will be subject to a flat 40% tax, leading to significant price reductions.