Lexus India has announced a across the board price revision to pass on the GST 2.0 benefits with reductions up to ₹20.80 lakh and effective from September 22, 2025. The announcement comes just in time for the festive season and helps the brand to widen its consideration among luxury buyers and reinforce its value story post reform.

Why it matters

The GST reform has lowered the tax burden on luxury vehicles, allowing car manufacturers to reduce prices without having to compromise on a car’s features or their own profit margins. Lexus is passing on the entire benefit to customers, as per the company. For premium buyers, this means lower on-road costs during a high demand period, making it more affordable and increasing purchase intent.

Model-wise price reductions

• ES 300h: Up to ₹1.47 lakh reduction, entry point to the Lexus sedan range gets better.
• NX 350h: Up to ₹1.58 lakh off, value play in the midsize luxury SUV segment gets stronger.
• RX 350h / RX 500h: Up to ₹2.10 lakh and ₹2.58 lakh reduction respectively, tech-forward hybrid proposition of the RX gets better.
• LM 350h: Up to ₹5.77 lakh off, luxury MPV becomes more affordable for chauffeur driven buyers.
• LX 500d: The biggest cut of up to ₹20.80 lakh, reshapes the value equation in the flagship luxury SUV segment.

How GST price cut affects luxury cars

The GST reform has overhauled the tax structure on luxury vehicles, replacing the previous mix of GST and cess – which could be as high as 50% – with a flat 40% rate. As a result, Lexus is publicly attributing its cuts to the reform and passing the full benefit on to customers.

Also read: Volvo India price cut: GST 2.0 trims XC60 and XC90 prices by up to ₹6.92 lakh from Sep 22

LX 500d price drop: what it means

With a massive reduction of up to ₹20.80 lakh, the LX 500d’s new price makes it a far more compelling value proposition against its competitors. This directly lowers the overall cost of purchase for a high-capacity diesel luxury SUV, reshaping the segment’s competitive landscape. It also means Lexus is looking to cash in on the renewed interest in full size luxury SUVs after price normalization.

ES 300h and NX 350h gets cheaper

The hybrid powertrain is a signature of the Lexus brand. With the new, lower prices, these models could encourage urban buyers to upgrade sooner, especially those who prioritize refinement and fuel efficiency. With cuts up to ₹1.47–₹1.58 lakh, these models are now more competitive against German rivals’ entry trims.

Market impact

The luxury car market is heating up, with mass-market and premium players alike announcing price reductions. Reports suggest steep cuts are coming from multiple brands, including Mercedes-Benz and Land Rover, putting pressure on all major players to realign their pricing. Expect a busier Q3–Q4 sales period as OEMs re-align pricing ladders and on-road deals with festive campaigns.

Note: The Lexus India Price Reduction, effective September 22, is a good opportunity to unlock festive demand but model-wise “up to” cuts means final ex-showroom prices should be confirmed with dealers as portals may take some time to update until go-live.