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Toyota Cars Price Drop by ₹3.49 Lakh After GST Rate Cut
Auto Updates | Sep 15, 2025 | Posted By: Kartik Rangam
Toyota has joined the list of carmakers that are passing the benefit of the recent GST reform onto the customers. Announced on 3rd September 2025, the GST Council approved new slabs for what is being dubbed as GST 2.0. The removal of cess and simplification of GST have made cars cheaper, which includes all of Toyota’s portfolio except one. In this article, we will discuss the price change of all Toyota cars in India due to GST 2.0.
Toyota Price Cut
Toyota has announced the following price cut for its lineup:
| Model Name | Price Cut |
| Rumion | Up to Rs 48,700 |
| Hyryder | Up to Rs 65,400 |
| Glanza | Up to Rs 85,300 |
| Camry | Up to Rs 1.01 lakh |
| Taisor | Up to Rs 1.11 lakh |
| Hycross | Up to Rs 1.15 lakh |
| Crysta | Up to Rs 1.80 lakh |
| Hilux | Up to Rs 2.52 lakh |
| Vellfire | Up to Rs 2.78 lakh |
| Legender | Up to Rs 3.34 lakh |
| Fortuner | Up to Rs 3.49 lakh |
Toyota Rumion, a 7-seater MPV, saw a price cut of Rs 48,700, followed by Hyryder and Glanza at Rs 65,400 and Rs 85,300, respectively. The biggest cuts were witnessed by Fortuner, Legender and Vellfire, which will be discussed below.
Toyota also sells the Land Cruiser 300 in India as a CBU, which was not mentioned in the press release by the carmaker.
New GST Slabs For Cars
If you are interested in why Toyota cars have seen such a massive price cut, you can read more about the GST reform here. If you do not want to click another link, here is a summary of the new GST and how it affects prices.
Currently, tax on cars includes a GST of 28% along with a compensation cess charge. The cess depends on the segment, with some models attracting up to 22% of the cess. This would result in a total of 50% GST on certain segments, which have now been dropped to 40%. Cess has also been removed, so although GST has been increased, the overall cost has dropped. Below is a table to help you visualise the changes better:
| Car Type | Engine and Length | New GST | Current Total Tax |
| Small Car (Petrol) | Up to 1200 cc and less than 4 meters | 18% | 29% |
| Small Car (Diesel) | Up to 1500 cc and less than 4 meters | 18% | 31% |
| Passenger Car | Up to 1500 cc | 40% | 45% |
| Passenger Car | Above 1500 cc | 40% | 48% |
| SUVs | Above 1500 cc and longer than 4 meters | 40% | 50% |
| Hybrid Vehicles | Up to 1200 cc (petrol) or 1500 cc (diesel) and less than 4 meters | 18% | 28% |
| Hybrid Vehicles | Above 1200 cc (petrol) or 1500 cc (diesel) or longer than 4 meters | 40% | 43% |
| Luxury Cars | Above 1500 cc | 40% | 48% |
| Electric Cars | No conditions | 5% | 5% |
Toyota Fortuner, which has seen the highest price cut, is an SUV that is longer than 4 meters and powered by an engine of over 1500 cc. The segment was taxed at 50% which has now dropped to 40%. Toyota Vellfire, a luxury MPV, saw a tax reduction of 3%, with a total price cut of Rs 2.78 lakh.
Toyota is not the only company to pass on the GST benefits to customers. Carmakers such as Tata and Renault have also announced price cuts, which will come into effect from 22nd September 2025. Mahindra has also introduced price cuts, which you can read about here.
Published on Sep 15, 2025
