Toyota Slashes Car Prices Post-GST 2.0: Save Up to Rs 3.49 Lakh

Toyota Kirloskar Motor (TKM) has rolled out substantial price reductions across its entire lineup following the GST 2.0 reforms, effective from September 22, 2025. This move aligns with similar announcements from automakers like Tata Motors and Mahindra, capitalizing on the GST Council's decision to simplify tax slabs. Popular models such as the Toyota Fortuner, Fortuner Legender, Innova Crysta, Innova Hycross, Camry, and Vellfire now offer savings of up to Rs 3.49 lakh, making them more accessible to Indian buyers. With the festive season approaching, these cuts are poised to boost demand, particularly for SUVs and MPVs. This article details the new prices, revised tax slabs, and their impact, optimized for the latest automotive news trends.

Toyota’s Price Cut Announcement

The GST 2.0 reforms, approved on September 3, 2025, have prompted Toyota to reduce prices across its portfolio, from compact hatchbacks to luxury MPVs. The Fortuner, a flagship SUV, leads with the highest reduction of Rs 3.49 lakh, followed by the Fortuner Legender at Rs 3.34 lakh. The Innova Crysta and Innova Hycross, popular among families, see cuts of up to Rs 1.81 lakh and Rs 1.16 lakh, respectively. Even premium models like the Camry sedan and Vellfire MPV benefit, with savings of Rs 1.02 lakh and Rs 2.78 lakh. Varinder Wadhwa, Vice President at TKM, praised the government’s reform, noting, “This historic tax rationalization enhances affordability and strengthens the auto sector’s growth trajectory.”

Detailed Price Reductions by Model

The price cuts vary by model, reflecting the revised GST rates and the removal of compensation cess. Below is a comprehensive table outlining the savings across Toyota’s lineup, effective from September 22, 2025. Buyers should note that reductions depend on the variant and powertrain, and consulting a Toyota dealership is recommended for precise pricing.

These reductions enhance Toyota’s competitiveness in segments ranging from hatchbacks to luxury MPVs, appealing to a wide range of buyers.

New GST Slabs Explained

The GST 2.0 reforms have streamlined tax rates for automobiles, reducing the burden across various vehicle categories. The table below outlines the revised GST slabs, effective from September 22, 2025, highlighting the savings for different vehicle types in Toyota’s lineup.

The Glanza and Taisor benefit from the largest tax reduction, dropping to 18%, while larger SUVs and MPVs see a 5-10% cut, significantly lowering on-road prices.

Impact on Toyota’s Flagship Models

The Fortuner, priced between Rs 36.05 lakh and Rs 52.34 lakh (ex-showroom) before the cut, now starts at approximately Rs 41 lakh, making it a compelling option in the premium SUV segment. The Fortuner Legender, retailing at Rs 44.51 lakh to Rs 50.09 lakh, benefits from a Rs 3.34 lakh reduction, enhancing its appeal against rivals like the MG Gloster. The Innova Crysta (Rs 19.99 lakh to Rs 27.17 lakh) and Innova Hycross (Rs 19.09 lakh to Rs 32.58 lakh) see reductions of Rs 1.81 lakh and Rs 1.16 lakh, respectively, strengthening Toyota’s dominance in the MPV market. The Vellfire, a luxury MPV, is now Rs 2.78 lakh cheaper, while the Camry sedan sees a Rs 1.02 lakh cut, making both more attractive to premium buyers.

Savings on Entry-Level and Mid-Range Models

Toyota’s sub-4-meter offerings, the Glanza and Taisor, see significant tax reductions from 29-31% to 18%, translating to savings of up to Rs 85,300 and Rs 1.11 lakh, respectively. Priced from Rs 6.99 lakh, the Glanza competes with the Maruti Suzuki Baleno, while the Taisor takes on the Tata Punch. The Urban Cruiser Hyryder, a hybrid SUV, benefits from a Rs 65,400 cut, making it a strong contender in the mid-size SUV segment against the Hyundai Creta and Maruti Grand Vitara. The Rumion MPV, with a Rs 48,700 reduction, appeals to budget-conscious families seeking practicality and reliability.

Festive Season Advantage

The timing of these price cuts aligns perfectly with Navratri and Diwali, when car sales typically surge. Toyota’s reductions are expected to drive demand for models like the Fortuner, Innova Crysta, and Hyryder, which are already popular for their reliability and features. TKM has advised customers to book early to ensure delivery before the festive rush. The combination of lower prices and Toyota’s reputation for durability positions the brand to capture a larger market share during this high-demand period.

How to Avail the Savings

To benefit from these price reductions, Toyota recommends contacting authorized dealerships for variant-specific pricing and booking details. Savings may vary based on powertrain (petrol, diesel, or hybrid) and trim level. Dealerships may also offer festive discounts or financing options to further enhance affordability. With the new prices effective from September 22, 2025, early bookings are crucial to secure delivery before the festive season peaks.

Industry-Wide Impact of GST 2.0

Toyota’s price cuts are part of a broader industry trend, with competitors like Tata Motors (Nexon, Rs 1.55 lakh cut), Mahindra (XUV700, Rs 1.43 lakh cut), and Hyundai also passing on GST benefits. The GST 2.0 reforms, chaired by Finance Minister Nirmala Sitharaman, aim to stimulate the auto sector by making vehicles more affordable. This move supports India’s economic growth goals, encouraging consumer spending and strengthening the automotive industry, which contributes significantly to GDP.