#ToyotaIndia #GSTReform #CarPriceCut #Fortuner #InnovaCrysta #InnovaHycross #Vellfire #Hilux #UrbanCruiser #Camry #FestiveSeason #AutoSector #GSTCouncil
Bengaluru – In a major boost to automobile buyers ahead of the festive season, Toyota Kirloskar Motor (TKM) has announced significant price reductions across its popular lineup, passing on the full benefit of the recent GST rate rationalisation to customers. The revised prices will take effect from September 22, coinciding with the start of Navaratri, a period when car sales traditionally surge in India.
Fortuner Gets Cheaper by Up to ₹3.49 Lakh
Among the biggest beneficiaries of the tax cut is Toyota’s flagship SUV, the Fortuner, which will now be cheaper by as much as ₹3.49 lakh. Its premium sibling, the Legender, also sees a sharp reduction of ₹3.34 lakh.
The Innova Crysta, one of Toyota’s most successful multipurpose vehicles, will see a price drop of up to ₹1.80 lakh, while the newer Innova Hycross gets cheaper by ₹1.15 lakh.
The ultra-luxury Vellfire MPV has become more affordable by ₹2.78 lakh, while the rugged Hilux pickup receives a price cut of ₹2.52 lakh.
Even mid-range offerings have not been left behind — the Camry hybrid sedan is cheaper by ₹1.01 lakh, the Urban Cruiser Hyryder by ₹65,400, and the Glanza hatchback by ₹85,300.
GST Council’s Auto Sector Boost
The price reductions come after the GST Council approved a landmark restructuring of tax slabs for automobiles.
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Smaller vehicles – petrol, LPG, or CNG cars with engines below 1,200 cc and under 4,000 mm length, and diesel cars up to 1,500 cc under the same length – will now attract 18% GST.
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Larger vehicles, such as petrol cars above 1,200 cc or diesel cars above 1,500 cc with lengths exceeding 4,000 mm, will now be taxed at 40% GST.
The changes will be implemented nationwide from September 22, and are expected to improve affordability for buyers while giving a much-needed push to the auto sector.
Toyota’s Response
Speaking on the development, Varinder Wadhwa, Vice President, Sales-Service-Used Car Business & Profit Enhancement at TKM, said:
“We sincerely thank the Government of India for this historic reform. It has not only enhanced affordability for customers but also strengthened overall confidence in the auto sector. Ahead of the festive season, we expect this step will provide strong momentum and further accelerate demand.”
Wadhwa further underlined Toyota’s long-term commitment to world-class mobility solutions, adding that the GST rationalisation will act as a catalyst to spur demand and contribute to India’s inclusive growth journey.
Industry Impact
The GST Council’s decision has sent ripples across the auto industry, with multiple manufacturers announcing similar cuts. Mahindra & Mahindra has already revised prices of the Thar, Scorpio, and XUV700, reducing them by up to ₹1.56 lakh. Tata Motors has also declared reductions, with some of its popular SUVs becoming cheaper by as much as ₹1.55 lakh.
The coordinated cuts by leading automakers indicate that the reform is set to unleash competitive pricing across segments, from budget hatchbacks to luxury SUVs.
Festive Timing and Market Sentiment
The timing of the tax reform is crucial. With Navaratri, Diwali, and year-end celebrations approaching, carmakers traditionally record their highest sales in the second half of the year.
Industry experts believe the tax rationalisation will not only benefit first-time buyers of compact cars but also spur upgrades among existing owners to premium SUVs and MPVs, thanks to the sharp reductions in larger vehicles.
The auto sector, which had been grappling with price-sensitive demand, is now expected to witness a surge in bookings and deliveries.
Toyota’s Strong Position
Toyota has been steadily expanding its portfolio in India, offering a mix of premium SUVs, luxury MPVs, and hybrids that appeal to diverse consumer segments. The company’s stronghold in the Innova and Fortuner categories gives it a significant advantage in leveraging the benefits of GST rationalisation.
The latest move is likely to further strengthen Toyota’s sales momentum, particularly in the high-demand SUV and MPV categories, where affordability often plays a decisive role.
Conclusion
With the GST Council’s sweeping reforms and Toyota’s swift decision to pass on the benefits to customers, buyers across India are set to enjoy unprecedented affordability in the auto market.
The price cuts, especially in flagship models like the Fortuner, Innova, and Vellfire, position Toyota as a strong beneficiary of this reform. For consumers, the festive season of 2025 promises not just celebrations but also dream deals on their favorite cars and SUVs.
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