Toyota Kirloskar Motor Next To Pass on Full GST Cut Benefits, Joins Rivals in Price Relief

Toyota Kirloskar Motor (TKM) today announced it will pass on the entire benefit of the GST rate reduction effective 22 September 2025, ahead of the festive season. Varinder Wadhwa, Vice President, Sales – Service –Used Car Business & Profit Enhancement, said this “historic reform” will boost affordability and spur demand, as Toyota aims to “make world-class mobility solutions more accessible”.

The price reductions on key models are as follows:

Meanwhile, other leading manufacturers have also announced full or substantial transfer of the GST benefits to customers:

Maruti Suzuki  
- Alto: price cut of ₹40,000–50,000  
- Wagon R: reduction of ₹60,000–67,000

Tata Motors:  
- Tiago: ₹75,000  
- Altroz: ₹1,10,000  
- Punch: ₹85,000  
- Nexon: ₹1,55,000  
- Harrier: ₹1,40,000  
- Safari: ₹1,45,000

Mahindra & Mahindra and Renault India have both confirmed they will extend the full GST cut to customers, with exact discounts varying by model and city.

Hyundai Motor India has indicated reductions of up to 7 per cent on sub-4 metre hatchbacks and compact SUVs such as the Grand i10 Nios and Venue, and savings of nearly 90,000 INR on models like the Creta. Premium-segment cars including the Tucson and Santa Fe will now attract 40 per cent GST, down from an effective rate of up to 50 per cent.

This coordinated industry response follows the GST Council’s decision on 3 September to cut the tax on small cars (engines ≤1,200 cc petrol/1,500 cc diesel, length ≤4 metres) to 18 per cent from 28 per cent and to cap GST on larger vehicles at 40 per cent by scrapping the compensation cess. The move is expected to drive volume growth in the passenger vehicle market and unleash pent-up demand during the festive buying season.