Lexus Announces Price Reductions Across Lineup, Passing Full GST 2.0 Benefits to Customers

In a landmark announcement, Lexus India has confirmed price reductions across its entire vehicle portfolio, extending the complete benefit of the newly introduced GST 2.0 reforms to customers. The revised pricing will be applicable from 22nd September 2025, strategically aligning with the festive season. This move reflects Lexus India’s commitment to customer satisfaction and its philosophy of Omotenashi, ensuring meaningful and personalized experiences for every Lexus owner.

The price revisions come in the wake of the 56th GST Council meeting held on 3rd September 2025, chaired by Finance Minister Nirmala Sitharaman. The Council introduced GST 2.0, a transformative reform designed to simplify tax structures and enhance affordability across multiple automotive segments.

Lexus India’s Official Statement

A spokesperson from Lexus India expressed gratitude towards the Government of India, stating:

“We sincerely thank the Government of India for this historic reform and are delighted to extend the full benefit of the GST rate reduction to our valued customers. This initiative not only improves accessibility but also instills greater confidence in the luxury mobility space. At Lexus, our philosophy of Omotenashi guides every decision, ensuring meaningful and personalized experiences for our customers. By extending these benefits in full, we reaffirm our commitment to making Lexus ownership memorable.”

This approach highlights Lexus’ customer-centric strategy, ensuring luxury becomes more accessible while strengthening the brand’s position in India’s premium automotive market.

Revised Lexus Price Reductions

The updated price benefits vary across different models, with reductions ranging from over one lakh to more than twenty lakhs. Below are the details:

Model
Price Reduction (Up to)
ES 300h
Rs 1,47,000
NX 350h
Rs 1,58,000
RX 350h
Rs 2,10,000
RX 500h
Rs 2,58,000
LM 350h
Rs 5,77,000
LX 500d
Rs 20,80,000

These reductions will significantly increase the appeal of Lexus vehicles during the festive buying season, making luxury mobility more attainable.

Understanding GST 2.0 and Its Impact on the Automotive Sector

The GST 2.0 reforms introduced in September 2025 are a landmark decision aimed at restructuring India’s automotive taxation system. The reforms not only benefit luxury vehicles but also bring relief to mass-market segments and agriculture-related machinery.

Key Highlights of GST 2.0:

  1. Small Cars

    • Definition: Vehicles under four metres in length with engine capacity up to 1,200cc (petrol) or 1,500cc (diesel).

    • Previous Tax: 28% GST + cess.

    • Revised Tax: 18% GST with no additional cess.

  2. Two-Wheelers, Three-Wheelers, and Commercial Vehicles

    • GST reduced from 28% to 18% on motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances.

  3. Agricultural Sector Benefits

    • GST on tractors, harvesters, threshers, fodder balers, and other farm machinery reduced from 12% to 5%, supporting farmers and agri-business owners.

  4. Auto Components

    • All automotive components now taxed at a uniform 18% GST, streamlining costs for manufacturers and suppliers.

The new GST framework ensures better price transparency, reduced taxation burdens, and improved affordability across the automobile spectrum.

Why This Matters for Customers

The impact of these changes extends beyond luxury buyers. For Lexus customers specifically, the reductions translate into:

  • Increased Affordability: Luxury vehicles now fall within a more competitive pricing range.

  • Greater Value for Money: Premium features and advanced hybrid technology become more accessible.

  • Festive Season Advantage: Customers benefit from revised prices during the high-demand period of September onwards.

  • Confidence in Policy Support: The reforms show strong government backing for the automotive sector, encouraging buyers to invest confidently.

Frequently Asked Questions (FAQs)

Q1: What is GST 2.0 and how does it affect Lexus customers?

A. GST 2.0 is a restructured tax system introduced in September 2025. It lowers GST rates on various categories, including automobiles. Lexus has passed on these benefits entirely, reducing prices for its entire lineup.

Q2: When will the revised Lexus prices be effective?

A. The revised prices will be effective from 22nd September 2025.

Q3: Which Lexus model received the highest price reduction?

A. The Lexus LX 500d received the largest reduction, with a benefit of up to Rs 20.80 lakh.

Q4: Does GST 2.0 benefit only luxury vehicles?

A. No. GST 2.0 benefits multiple segments including small cars, motorcycles, commercial vehicles, and even agricultural machinery, making it a holistic reform.

Q5: Where can I find official Lexus India information?

A. Customers can visit the official Lexus India website at www.lexusindia.co.in for official details and updates.

Conclusion

Lexus India’s decision to pass on the full GST 2.0 benefits to customers marks a pivotal moment for the luxury automobile market in India. By reducing prices across its entire lineup, Lexus has strengthened its commitment to delivering not just premium vehicles but also exceptional value. As the reforms take effect this festive season, customers can expect greater accessibility, affordability, and confidence in choosing Lexus for their mobility needs.

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