GST 2.0: Toyota Cars Get Cheaper By Up To Rs. 3.49 Lakh In India

The Indian automobile industry has welcomed the new GST 2.0 tax structure with excitement. After the 56th GST Council meeting held on September 3, 2025 the government introduced a revised Goods and Services Tax (GST) system for vehicles. This move has directly lowered the prices of many cars, including Toyota’s best selling models. Customers will now be able to save up to Rs. 3.49 lakh depending on the model making Toyota cars more affordable than before

New GST Rates For Cars

The government has simplified the GST structure under GST 2.0. Earlier, passenger vehicles were taxed at 28% GST along with additional cess depending on engine size and car length. This often made larger vehicles more expensive. Under the revised tax system:

• Small Cars: 18% GST (no additional cess)
• Luxury and Large Cars: Flat 40% GST (without cess)

This reform has removed the complex cess system and provided a direct price benefit to buyers. For Toyota, this change has resulted in visible cuts across its entire lineup.

Toyota’s Announcement

Toyota Kirloskar Motor confirmed that it will pass on the entire benefit of GST 2.0 to its customers. The new prices will take effect from September 22, 2025 covering all internal combustion engine (ICE) vehicles in the company’s portfolio. This comes just ahead of the festive season which is expected to further boost demand

Company officials expressed their support for the reform highlighting how it makes vehicles more affordable and boosts customer confidence in the auto sector. They also pointed out that reduced prices will encourage sustainable and inclusive growth for India’s mobility sector

Model-Wise Toyota Price Reductions

The following table lists the estimated price reductions on Toyota models under GST 2.0

• Toyota Glanza– Up to Rs. 85,300 cheaper
• Toyota Taisor– Up to Rs. 1,11,100 cheaper
• Toyota Rumion– Up to Rs. 48,700 cheaper
• Toyota Urban Cruiser Hyryder– Up to Rs. 65,400 cheaper
• Toyota Innova Crysta– Up to Rs. 1,80,600 cheaper
• Toyota Innova Hycross– Up to Rs. 1,15,800 cheaper
• Toyota Fortuner– Up to Rs. 3,49,000 cheaper
• Toyota Legender– Up to Rs. 3,34,000 cheaper
• Toyota Hilux– Up to Rs. 2,52,700 cheaper
• Toyota Camry Hybrid– Up to Rs. 1,01,800 cheaper
• Toyota Vellfire– Up to Rs. 2,78,000 cheaper

GST 2.0 And Customer Benefits

Lower tax rates and reduced ex-showroom prices mean multiple benefits for customers:

• Cheaper On-Road Costs: Reduced ex-showroom price lowers insurance premiums, registration charges, and road taxes.
• Better Value For Money: Large SUVs and hybrids now offer more features at lower prices.
• Affordable Green Options: Hybrids like the Camry and Hyryder are more competitive, pushing buyers toward eco-friendly mobility.
• Festive Advantage: With the reforms arriving before the festive season, customers will likely see attractive offers alongside reduced prices.

Market Impact On The Automobile Industry

The automobile industry is set to gain from GST 2.0:

• Increased Demand: Price-sensitive customers are more likely to upgrade or buy bigger cars.
• Higher Sales For Hybrids: Toyota’s hybrids get a strong edge as their prices come closer to petrol and diesel cars.
• Stronger Competition: Toyota becomes more competitive against other automakers in India’s growing SUV and hybrid market.
• Confidence Boost: Simplified GST rates create transparency, helping customers make quicker purchase decisions.

Future Outlook For Toyota

Toyota’s portfolio is likely to witness stronger sales momentum. Models like the Fortuner and Innova, which were earlier considered expensive now look more attractive to buyers. Hybrids such as the Camry and Hyryder are also expected to gain popularity thanks to their reduced costs and growing preference for sustainable vehicles

GST 2.0 has reshaped the Indian car market. For Toyota, this means lower prices, wider accessibility, and stronger demand. Customers benefit with savings of up to Rs. 3.49 lakh, while the automobile industry looks forward to a sales boost. With the festive season ahead, GST 2.0 may well become the turning point for the next wave of car sales in India.