Skoda announces price cuts up to Rs 3.3 lakh amid GST reforms, Volkswagen Virtus expected to cost lesser too

Following reforms in Goods and Service Tax (GST), the cost of cars are projected to come down significantly. Several companies, including Hyundai, Mahindra, and Audi have already announced the new rates starting from September 22.

According to the new tax rates, small cars will be taxed 18% without any cess, while larger vehicles will now be taxed at a flat 40%, down from the earlier 45–50% bracket that included cess.

Skoda India has said that it will pass on the benefits to consumers, bringing the prices down by up to Rs 3.3 lakh. Additionally, the company also announced a special festive offer with discounts up to Rs 2.5 lakh, if the booking is done prior to September 21.

The current prices of the Skoda Kodiaq begin from Rs 46.89 lakh (ex-showroom). The car will now be cheaper by up to Rs 3.3 lakh.

Meanwhile, the Skoda Kushaq, which is currently priced at Rs 10.99 lakh will receive a GST benefit of up to Rs 66,000 and a limited-period discount offer of up to Rs 2.5 lakh, valid till September 21.

Further, Skoda Slavia, the company's flagship sedan starting from Rs 10.49 lakh, becomes more affordable with GST benefits of up to Rs 63,000 and a discount offer of up to Rs 1.2 lakh.

The affordable sub-4 meter SUV, Skoda Kylaq, will also receive a price drop. However, the brand has not yet confirmed the exact prices as per the GST reform that will come into effect from 22nd September.

What is expected from Volkswagen

Volkswagen, which also sells Skoda, Audi, and Porsche in India, is also expected to reduce the price on Virtus, Tiguan and other cars.

Volkswagen Virtus, which costs Rs 11.56 lakh is expected to cost Rs 57,00 lesser, placing it at approximately Rs 10.99 lakh. Further, the company's SUV, Tiguan is expected to cost Rs 35,000 lesser from the current Rs 13.79 lakh.

Meanwhile, the recently launched Volkswagen Golf GTI priced at Rs 61.91 lakh is expected to cost about 8-10 per cent lesser, making it a massive drop of about Rs 6 lakh.

Similarly, the Tiguan R-line, which is priced at Rs 49 lakh is also expected to see an 8-10% drop.

(Skoda has officially announced the price cuts, while Volkswagen is still to make an announcement)