Good news for car buyers in India! The Government of India has made a new change in the tax system called GST 2.0. Because of this, many cars in India will now cost less money One of the largest automakers, Toyota, has already lowered the cost of its vehicles. Some Toyota Cars are now over ₹3.5 lakh less expensive.
What is GST 2.0?
Goods and Services Tax is known as GST. People pay this tax when they purchase products or services. There were numerous taxes before to the GST, including road tax, excise duty, and VAT. They were all merged into a single tax by GST.
The government launched GST 2.0 in September 2025. The tax rates for automobiles have altered in this updated version of the GST.
Car taxes used to be extremely expensive. For luxury cars, large cars, and small cars, it was different. Additionally, larger cars were subject to an additional cess (tax). People occasionally had to pay about 50% tax on autos! Cars became quite costly as a result.
However, the tax system is lighter and more straightforward under GST 2.0:
- There is no additional tax and 18% GST applied to small cars (less than 4 meters in length) with petrol engines up to 1200cc or diesel engines up to 1500cc.
- Big cars and SUVs (longer than 4 meters or with bigger engines) – 40% GST flat, no extra cess.
Because of this, Toyota Cars prices have gone down in India.
Toyota Cars Reduces Prices After GST 2.0
Toyota Kirloskar Motor (TKM) has announced that they are passing the full benefit of GST 2.0 to their customers. This means Toyota Cars is not keeping the extra profit but giving price cuts directly to buyers.
Just before the holiday season, on September 22, 2025, the new prices went into effect.
Here is a list of Toyota cars and how much cheaper they have become:
- Toyota Fortuner: Price reduction of up to ₹3.49 lakh.
- The Toyota Legender’s pricing was reduced by roughly ₹3.34 lakh.
- Innova Crysta: Discount of up to ₹1.80 lakh.
- Innova Hycross: Price reduction of up to ₹1.16 lakh.
- Toyota Hilux: Price reduction of up to ₹2.53 lakh.
- Toyota Vellfire: Price reduction of up to ₹2.78 lakh.
- Toyota Camry: Price reduction of up to ₹1.02 lakh.
- Toyota Glanza: Save up to ₹85,300.
- Toyota Taisor: Price reduction of up to ₹1.11 lakh.
- Toyota Hyryder: Price reduction of up to ₹65,400.
- Toyota Rumion: Save up to ₹48,700.
As you can see, the biggest benefit is for the Fortuner and Legender SUVs. These luxury Toyota Cars have become cheaper by more than ₹3 lakh. Even other family cars like Innova, Glanza, and Rumion have also become more affordable.
Why Are Car Prices Going Down?
The main reason is the tax cut. When the government reduces tax, car companies do not have to pay so much money to the government. So, they can sell cars at lower prices.
For example:
- Earlier, a Fortuner might cost ₹50 lakh including 50% tax.
- Now under GST 2.0, the tax is less, so the same Fortuner may cost around ₹46.5 lakh.
- This means the customer saves money.
Also, because this is happening before the festive season (Navratri, Diwali, etc.), more people will plan to buy Toyota Cars.
Other Companies Also Reducing Prices
Not only Toyota Cars, but other companies like Tata Motors, Mahindra, and Renault have also cut down prices because of GST 2.0.
- Tata Motors vehicles can result in savings of up to ₹1.55 lakh.
- Mahindra SUVs are up to ₹1.56 lakh less expensive.
- Renault: Vehicles can save up to ₹96,000.
This shows that the whole automobile industry is giving benefits to customers.
What Does This Mean for Customers?
For customers, this is a golden chance. Toyota Cars are now cheaper, and people can save lakhs of rupees.
- If you were planning to buy a car, this is the best time.
- The cost of luxury Toyota Cars such as the Fortuner, Legender, and Vellfire has decreased.
- Family cars like Innova, Glanza, Rumion are also cheaper, which is good for middle-class families.
- You can use the saved money for accessories, insurance, or other needs.
Why is This Good for India?
The Indian automobile market is very big. Millions of people buy cars every year. But because cars were very costly earlier, many people could not afford them.
Now, because of GST 2.0:
- Cars are more affordable.
- The automobile business will expand more quickly.
- more people will purchase automobiles.
- more cars will be sold by automakers.
- and higher sales will bring in more money for the state in the form of taxes.
Thus, the government, automakers, and consumers all benefit from this move.
For instance: The Potential Savings
Let’s look at an illustration.
Consider wanting to buy a Toyota Fortuner before GST 2.0 went into effect. It cost about 50 lakh rupees. The price has decreased by ₹3.49 lakh since the implementation of GST 2.0. The current pricing is approximately ₹46.5 lakh. For any buyer, that is a significant savings.
Similarly, if you wanted to buy a Toyota Glanza, the saving is around ₹85,000 For a long period, that sum will cover fuel, insurance, and maintenance.
Easy Comparison: Car Model Price Reduction (approximately) Before and After GST 2.0
- Fortuner costs ₹3.49 lakh less. Legender is less pricey at ₹3.34 lakh.
- The Innova Crysta is ₹1.80 lakh less expensive.
- The Innova Hycross is ₹1.16 lakh less expensive.
- Hilux for ₹2.53 lakh less
- Vellfire is ₹2.78 lakh less expensive.
- Camry for ₹1.02 lakh less
- Glanza is ₹85,300 less.
- Taisor ₹1.11 lakh less expensive
- Hyryder is cheaper by ₹65,400.
- Rumion ₹48,700 less expensive
Final Thoughts
The launch of GST 2.0 is a big step for India. It has made the tax system simpler and fairer. For car buyers, it is a blessing because Toyota Cars are now cheaper by thousands and even lakhs of rupees.
Toyota has reduced prices of all its cars, from small hatchbacks like Glanza to luxury SUVs like Fortuner and Vellfire. Other companies like Tata, Mahindra, and Renault have also given discounts.
So, if you were waiting to buy a new car, this is the best time. You can save a big amount and also enjoy the upcoming festive season with your dream car.
In short: GST 2.0 has made cars cheaper in India. Toyota cars are now up to ₹3.5 lakh less expensive. This is good news for every car lover in India!
Disclaimer: Product prices, features, and specifications mentioned on this website may change without notice. Please check the official brand website or trusted retailers for the latest updates before making any purchase.
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