New Delhi, September 6, 2025 — In a surprise move set to shake up India’s automobile market, Toyota Kirloskar Motor (TKM) has announced massive price cuts across nearly its entire lineup. Thanks to a historic GST rate reduction, premium SUVs, MPVs, and even hatchbacks from Toyota are now cheaper by thousands to lakhs of rupees, offering buyers a once-in-a-decade chance to grab their dream car for less.
The new pricing, effective September 22, comes just ahead of the festive buying season, potentially triggering a new wave of demand in India’s competitive auto sector. If you’ve been planning to buy a Fortuner, Innova, Vellfire, or even the budget-friendly Glanza — the timing couldn’t be better.
Complete Price Cut Breakdown
- Fortuner — Up to ₹3.49 lakh cheaper
- Fortuner Legender — ₹3.34 lakh down
- Vellfire — ₹2.78 lakh down
- Hilux Pickup — ₹2.52 lakh down
- Innova Crysta — ₹1.80 lakh down
- Innova Hycross — ₹1.16 lakh down
- Camry — ₹1.01 lakh down
- Urban Cruiser Taisor — ₹1.11 lakh down
- Urban Cruiser Hyryder — ₹65,400 down
- Glanza — ₹85,300 down
- Rumion — ₹48,700 down
This is part of GST 2.0’s tax rationalisation, which simplified auto taxes, slashed cesses, and made it easier for companies to pass on savings directly to customers.
What It Means for Car Buyers
This is not just a price drop — this is a market-shaping moment:
- Premium SUVs Become More Accessible: The ₹50 lakh Vellfire and popular Fortuner models now fall into a more comfortable price range, tempting both new buyers and those looking to upgrade.
- Festive Season Booster: Historically, the Indian auto industry witnesses its biggest sales spikes during Navratri, Dussehra, and Diwali. Now, with GST-driven price cuts, expect dealerships to be buzzing with activity.
- More Cars, More Competition: Toyota’s proactive price pass-through could force competitors like Mahindra, Tata, Hyundai, and Kia to follow suit, sparking a potential price war — a win for buyers everywhere.
Toyota Speaks: “A Catalyst for Growth”
Varinder Wadhwa, Vice President at TKM, called the move a “historic reform”, adding:
“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.”
Toyota also reiterated its commitment to “making world-class mobility solutions more accessible”, positioning the GST reform as a key driver of inclusive growth.
Industry Experts React
Auto analysts are calling this “a perfect storm of demand triggers” — citing three reasons:
- Tax Simplification — Lower GST rates mean fewer hidden costs.
- Better Financing Options — Lower EMIs thanks to smaller ex-showroom prices.
- Psychological Trigger — Big ticket items suddenly looking like a better deal encourages fence-sitters to finally book.
According to Motilal Oswal Auto Research, the GST 2.0 reforms could increase passenger vehicle sales by 15-18% YoY in Q4 FY25 — a significant leap compared to earlier projections.
For car buyers, this is as good as it gets: major tax reforms, festival discounts incoming, and competitive pressure likely to sweeten deals even further.
But with increased demand comes longer waiting periods — especially for popular models like the Fortuner and Innova. If you’ve been eyeing one, it may be wise to book sooner rather than later.