{"id":57761,"date":"2025-09-09T16:47:36","date_gmt":"2025-09-09T11:17:36","guid":{"rendered":"https:\/\/caronphone.com\/news\/?p=57761"},"modified":"2026-01-03T11:39:01","modified_gmt":"2026-01-03T06:09:01","slug":"gst-2-0-sparks-major-price-cuts-lexus-cars-now-cheaper-by-up-to-%e2%82%b920-8-lakh","status":"publish","type":"post","link":"https:\/\/caronphone.com\/news\/gst-2-0-sparks-major-price-cuts-lexus-cars-now-cheaper-by-up-to-%e2%82%b920-8-lakh\/","title":{"rendered":"GST 2.0 Sparks Major Price Cuts: Lexus Cars Now Cheaper By Up To \u20b920.8 Lakh"},"content":{"rendered":"

\"GST<\/p>

India\u2019s automobile sector has entered a new chapter with the launch of GST 2.0. The revised tax system is designed to simplify the earlier multi-layered structure and to lower the cost of ownership for buyers.<\/span><\/p>

Under the previous system, luxury cars were taxed at 28% GST plus an additional compensation cess of up to 22%, which made high-end vehicles extremely expensive. GST 2.0<\/a> has now replaced this with a flat 40% GST rate on all premium cars.<\/span><\/p>

This single tax rate has made luxury models more affordable, as automakers are now passing on the full benefit to customers. <\/span><\/p>

What Are The New GST Tax Slabs?<\/span><\/b><\/h2>

The new GST tax slab under GST 2.0 has simplified the structure for automobiles. Earlier, buyers had to pay 28% GST plus a variable cess that could go as high as 22% for larger luxury vehicles. Now, this system has been replaced by a single flat rate.<\/span><\/p>

New GST Rates For Automobiles:<\/span><\/b><\/h3>

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\n\n\n\t\n\n\t\n\t\n\t\n\t
Vehicle Category<\/th>Old GST Rate (GST + Cess)<\/th>New GST Rate under GST 2.0<\/th>\n<\/tr>\n<\/thead>\n
Small Cars (under 4m, \u22641200cc petrol)<\/td>28%<\/td>18%<\/td>\n<\/tr>\n
Mid-size Cars (under 4m, \u22641500cc diesel)<\/td>28%<\/td>18%<\/td>\n<\/tr>\n
SUVs and Large Luxury Cars<\/td>28% + 22% cess (50%)<\/td>40%<\/td>\n<\/tr>\n
Electric Vehicles<\/td>5%<\/td>5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n\u202f<\/span><\/p>

This major tax reform has encouraged premium carmakers to pass on the full savings directly to customers.<\/span> <\/span><\/p>

Lexus India Announces Price Reductions<\/span><\/b><\/h2>

In line with other global luxury brands operating in India, Lexus India has announced price cuts across its full portfolio. The revised pricing will take effect from September 22, 2025, the same date the GST 2.0 tax structure officially comes into force nationwide.<\/span><\/p>

The reductions vary by model, but the most dramatic drop is seen on the flagship SUV.<\/span><\/p>

Lexus<\/span><\/b> Cars New Pricing After GST Cut<\/span><\/b><\/h3>

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\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t
Model<\/th>Price Reduction (\u20b9)<\/th>\n<\/tr>\n<\/thead>\n
ES 300h<\/td>1.47 lakh<\/td>\n<\/tr>\n
NX 350h<\/td>1.58 lakh<\/td>\n<\/tr>\n
RX 350h<\/td>2.10 lakh<\/td>\n<\/tr>\n
RX 500h<\/td>2.58 lakh<\/td>\n<\/tr>\n
LM 350h<\/td>5.77 lakh<\/td>\n<\/tr>\n
LX 500d<\/td>20.8 lakh<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n\u202f<\/span><\/p>

This clearly shows how <\/span>GST 2.0<\/span><\/b> benefits both entry-level luxury buyers and those looking at flagship SUVs.<\/span><\/p>

Lexus India\u2019s Market Strategy<\/span><\/b><\/h2>

Lexus entered the Indian automobile industry in 2017 and currently sells a five-model lineup, with four of them being self-charging hybrid electric vehicles. The ES<\/a> 300h sedan remains the brand\u2019s most popular model in India, and it was also the first Lexus<\/a> to be locally manufactured in the country<\/span><\/p>

The company has highlighted that this move is not just about lowering prices, but also about making luxury mobility more accessible to Indian buyers<\/span><\/p>

Official Statement From Lexus India<\/span><\/b><\/h2>

Hikaru Ikeuchi, President of Lexus India, expressed gratitude towards the government, calling the GST reform \u201chistoric.\u201d He emphasized that:<\/span><\/p>

The full GST benefit will be passed on to customers.<\/span><\/p>

The reform improves affordability and accessibility in the luxury mobility space.<\/span><\/p>

The timing right before the festive season will encourage more customers to experience the Lexus brand.<\/span><\/p>

He also mentioned that the initiative reflects the company\u2019s focus on Omotenashi, a Japanese philosophy of hospitality that anticipates customer needs and ensures meaningful ownership experiences.<\/span><\/p>

Impact On The Automobile Industry<\/span><\/b><\/h2>

The <\/span>automobile industry<\/span><\/b> has faced challenges in recent years due to rising input costs and fluctuating demand. However, the implementation of GST 2.0 is expected to:<\/span><\/p>

  • Increase sales in the premium car segment<\/span><\/li>
  • Encourage more customers to consider luxury SUVs and sedans<\/span><\/li>
  • Help luxury automakers compete more strongly with imported models<\/span><\/li>
  • Boost festive season demand across metros and urban markets<\/span><\/li> <\/ul>

    Industry experts believe that with price cuts of up to \u20b920.8 lakh, the luxury car segment could see a revival in growth and stronger competition<\/span><\/p>

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