Skoda Passes on GST Benefits to Buyers

Skoda Auto India has become the latest carmaker to announce significant price cuts across its entire product lineup, directly passing on the benefits of the revised GST structure to customers. Starting September 22, buyers can enjoy savings of up to ₹3.3 lakh, making some of Skoda’s most popular SUVs and sedans more accessible.

According to the company, the flagship Kodiaq SUV will see the highest reduction, with prices dropping by up to ₹3,28,267. The newly introduced Kylaq compact SUV will also benefit, with a price cut of up to ₹1,19,295. The bestselling Kushaq SUV will now cost up to ₹65,828 less, while the Slavia sedan will carry a reduced price tag by up to ₹63,207.

Why the Prices Are Dropping

The development comes after the GST Council announced revised tax rates for automobiles. Under the new structure, the goods and services tax on small cars has been reduced from 28% to 18%, while luxury vehicles now attract a flat 40% rate. This decision has forced automakers to restructure their pricing, with Skoda and several other manufacturers embracing the change to provide direct benefits to buyers.

Skoda Auto India’s Brand Director Ashish Gupta welcomed the move, calling it a progressive step that benefits both the industry and customers. “The revised and simplified GST structure works in favour of everyone—it gives buyers greater value in their purchase decisions while bringing clarity to the premium market segment,” Gupta noted.

Limited-Period Pre-GST Offers

Interestingly, ahead of the official GST rollout on September 22, Skoda has already extended limited-period benefits equivalent to the upcoming tax reductions. These temporary offers on the Kushaq, Slavia, and Kodiaq models are valid until September 21, allowing eager buyers to get an early taste of the revised pricing.

Wider Trend in the Auto Industry

Skoda’s proactive price revision follows a wave of announcements from major automakers like Mahindra & Mahindra, Tata Motors, Hyundai Motor India, and Mercedes-Benz India, all of whom have slashed prices across their portfolios. According to analysts at Kotak Institutional Equities, on-road prices in India are expected to decline by an average of 5-8% under the new tax regime. Passenger vehicles are likely to see reductions of 2-9% in overall cost, depending on category and segment.

This wave of cuts is expected to boost overall car sales in the festive season, giving customers a unique opportunity to purchase vehicles at significantly lower effective costs.

A Win-Win for Skoda and Customers

For Skoda, the GST cut presents an opportunity to strengthen its foothold in the Indian automotive market. With attractive and competitive pricing across models, the brand can now appeal to a wider audience—from entry-level sedan buyers to premium SUV enthusiasts.

For customers, the reductions not only improve affordability but also enhance value-for-money propositions. The revised prices make feature-rich offerings like the Kushaq and Slavia more competitive while giving luxury car aspirants greater access to high-end SUVs like the Kodiaq.

As India’s automotive market gears up for the festive rush, Skoda’s decision to pass on the full GST benefit to buyers signals a customer-first approach. With savings of up to ₹3.3 lakh, this move is expected to fuel demand and expand Skoda’s presence in one of its fastest-growing markets.

Read Also: Citroën India Slashes Prices in 2025: Basalt Starts at Rs 7.95 Lakh with Festive Savings

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