GST 2.0 has brought some of the biggest tax changes India’s automotive sector has seen in years. Starting September 22, 2025, the new GST rates simplify slabs and reduce prices for automobiles. For Toyota, a leader in mass and luxury segments, the effect has been significant.
The older regime taxed cars based on size and engine displacement, as well as GST at22.8%, and a cess ranging from 1% to 22%. This averaged total rates between 29% and 50%. GST 2.0 has simplified that. Subcompact vehicles under 4 metres in length and with 1200cc petrol (1500cc diesel) engines now fall into a low and simple 18% GST rate, and larger cars and SUVs above 4 metres move into a simple 40% GST.
On Toyota purchases, that means massive cuts across the line-up – from tiny hatchbacks like the Glanza to expensive SUVs like the Fortuner and luxury MPVs like the Vellfire. The cuts range from ₹48,700 on the Rumion to a whopping ₹3.49 lakh on the Fortuner.
GST Impact on Toyota Cars up to 1200cc and up to 4000mm
Toyota is less busy in the small-car segment than Maruti, but the firm has crucial offerings in that segment. GST 2.0 reduces rates on sub-4m vehicles from 29–31% to 18%, making a huge difference; the reduction ends up being an 11–13% reduction.
The Toyota Taisor benefits the most in this category with a maximum discount of ₹1.11 lakh. The pricier Toyota Glanza receives the minimum discount at ₹85,300. Both vehicles now appear significantly more attractive to buyers weighing options against those in the hatchback segment and the subcompact crossover segment.
Price Changes — Toyota (Small Cars & Sub-4m SUV) — Indicative Ranges
| Car | Price Before GST Update | Price After GST Update | Difference |
| Toyota Glanza | ₹9,60,000 – ₹10,30,000 | ₹8,80,000 – ₹9,30,000 | ₹75,000 – ₹85,300 |
| Toyota Taisor | ₹13,80,000 – ₹14,30,000 | ₹12,70,000 – ₹13,30,000 | ₹95,000 – ₹1,11,000 |
Toyota Cars under 1200cc and up to 4000 mm. shift brings Toyota’s entry-level products closer in pricing to rivals from Maruti, Hyundai, and Tata, strengthening Toyota’s hand in the competitive small-car space.
GST Impact on Toyota Cars with more than 1200cc and more than 4000mm
GST 2.0 affects the segment in which Toyota operates the most strongly. Most of its bestsellers, Innova, Fortuner, Hilux, Camry, and Vellfire are in that segment. Up to that point, those vehicles were taxed anywhere between 40–45–50% (28% GST and a humongous cess). GST 2.0 has compressed that rate for them to a simple 40%.
That 5–10 per cent gap doesn’t appear big on paper, but put these numbers into cars that cost ₹20–80 lakh and the flat-out savings are humongous. Consumers save between ₹48,700 on the Rumion (entry MPV) and a whopping ₹3.49 lakh on the Fortuner.
The Fortuner and Fortuner Legender take the lead in the largest reductions across Toyota’s entire lineup—₹3.49 lakh and ₹3.34 lakh, respectively. The Rumion gets the lowest cut at ₹48,700 on the other hand. The Vellfire (₹2.78 lakh) and Hilux (₹2.53 lakh), being high-end products, also experience steep cuts and are better positioned within their luxury and lifestyle categories.
| Car | Price Before GST Update | Price After GST Update | Difference |
| Toyota Rumion | ₹10,80,000–₹13,60,000 | ₹10,30,000–₹13,10,000 | ₹40,000 – ₹48,700 |
| Toyota Hyryder | ₹12,80,000 – ₹20,50,000 | ₹12,15,000–₹19,85,000 | ₹55,000 – ₹65,400 |
| Toyota Innova Crysta | ₹20,50,000 – ₹26,50,000 | ₹18,90,000 –₹24,90,000 | ₹1,60,000 – ₹1,81,000 |
| Toyota Innova Hycross | ₹19,80,000 – ₹30,50,000 | ₹18,60,000 –₹29,30,000 | ₹1,00,000 – ₹1,16,000 |
| Toyota Fortuner | ₹33,50,000 – ₹51,00,000 | ₹30,00,000 –₹47,80,000 | ₹3,20,000 – ₹3,49,000 |
| Toyota Fortuner Legender | ₹42,50,000 – ₹52,50,000 | ₹39,20,000 –₹49,30,000 | ₹3,10,000 – ₹3,34,000 |
| Toyota Hilux | ₹30,50,000 – ₹37,50,000 | ₹28,00,000 –₹35,20,000 | ₹2,30,000 – ₹2,53,000 |
| Toyota Camry | ₹46,50,000 – ₹53,00,000 | ₹45,50,000 –₹52,10,000 | ₹90,000 – ₹1,02,000 |
| Toyota Vellfire | ₹1,20,00,000–₹1,35,00,000 | ₹1,17,50,000–₹1,32,50,000 | ₹2,50,000 – ₹2,78,000 |
Toyota Cars over 1200cc and more than 4000mm. For high-priced cars like these, the psychological impact is huge. One day, a Fortuner was ₹3.5 lakh lower, and that would be just enough to push the needle for indecisive clients. Similarly, the Vellfire and Hilux are better positioned against luxury and lifestyle rivals, and the Camry becomes more significant in the declining premium sedan category.
Summary: How has the GST update affected Toyota cars
The GST 2.0 revamp has been a price-cutter for Toyota. Reducing rates and making slab changes has seen the reform translate directly into huge price cuts across Toyota’s line-up.
- Entry-level impact: The Glanza and Taisor were reduced by up to ₹85,300 and ₹1.11 lakh, respectively. The reductions make Toyota’s sub-4m offerings far more competitive, where every rupee counts.
- Biggest savings in the premium segment: MPVs and SUVs comprising the Fortuner (₹3.49 lakh), Legender (₹3.34 lakh), Vellfire (₹2.78 lakh), and Hilux (₹2.53 lakh) registered the maximum drop. For people keeping purchases on hold for cars in the above ₹40 lakh category, these drops make a significant psychological impact.
- Family favourites like the Innova also gained ₹1.81 lakh for the Innova Crysta and ₹1.16 lakh for the Innova Hycross, helping Toyota solidify its grip on the MPV market.
GST 2.0 has boosted Toyota’s value proposition across the range. Cheaper options are available for consumers, and Toyota should benefit from a likely demand increase. The lower cost of ownership, ease in rates, and competitive alignment may yet result in stronger sales traction for Toyota in the ensuing couple of months.
FAQs about GST Impact on Toyota Cars
Q. What is GST 2.0, and how does it affect Toyota cars?
GST 2.0 is a revised tax structure effective from September 22, 2025. For Toyota, it means lower GST rates across its lineup: 18% for sub-4m small cars and 40% for larger cars/SUVs. This has led to price cuts ranging from ₹48,700 to ₹3.49 lakh.
Q. Which Toyota car gets the biggest price cut after GST 2.0?
The Toyota Fortuner receives the largest reduction—up to ₹3.49 lakh. The Fortuner Legender follows closely with cuts of up to ₹3.34 lakh.
Q. Are Toyota’s entry-level cars also affected by GST 2.0?
Yes. The Toyota Glanza now costs up to ₹85,300 less, and the Toyota Taisor up to ₹1.11 lakh less, thanks to the reduced GST for sub-4m vehicles.
Q. How much cheaper are Toyota’s MPVs like the Innova after GST 2.0?
The Innova Crysta is cheaper by up to ₹1.81 lakh, while the Innova Hycross sees a reduction of up to ₹1.16 lakh.
Q. Does GST 2.0 benefit Toyota’s luxury cars as well?
Yes. Premium models like the Camry (up to ₹1.02 lakh off) and the Vellfire (up to ₹2.78 lakh off) also benefit significantly.
Q. Will these GST 2.0 price cuts positively affect Toyota’s sales?
Most likely, yes. By making popular models across different price bands more affordable, Toyota is expected to attract stronger demand, especially for its SUVs and MPVs.
Q. When do the new GST 2.0 prices come into effect for Toyota cars?
The updated prices are effective from September 22, 2025, across all Toyota dealerships in India.
