Lexus India has announced significant price cuts across its entire lineup, effective September 22, 2025, fully passing on the benefits of the recent GST rate reduction on automobiles.

The move follows the GST Council’s decision to overhaul vehicle taxation, reducing the tax burden on luxury cars by replacing the 28% GST plus compensation cess (up to 22%) with a flat 40% slab, effective from the start of Navratri.

Lexus India President Hikaru Ikeuchi called the GST reform a “historic step” that enhances affordability in the luxury mobility segment. Price reductions range from Rs 1.47 lakh on the ES 300h sedan to a substantial Rs 20.8 lakh on the flagship LX 500d SUV, making Lexus vehicles more accessible to Indian buyers. “This initiative, timed with the festive season, will spark joy and open new opportunities for our guests to experience Lexus’ luxury,” Ikeuchi stated.

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The GST overhaul, announced by Finance Minister Nirmala Sitharaman, aims to simplify tax slabs and boost demand in the automotive sector. For luxury SUVs like the Lexus LX, previously taxed at nearly 50%, the new 40% slab translates to significant savings, aligning with industry expectations of increased affordability.