Volkswagen India has announced that it will fully extend the
benefits of the revised Goods and Services Tax (GST 2.0) structure to customers
across its product lineup. The revised prices will take effect from September
22, 2025.
Under the new tax regime, Volkswagen models will see
significant price reductions. The Virtus will get benefits of up to Rs 66,900,
the Taigun up to Rs 68,400, and the flagship Tiguan R-Line up to Rs 3,26,900,
depending on the variant.
In addition to GST-linked price cuts, Volkswagen is also
offering limited-period benefits ranging from Rs 1.61 lakh on select Taigun
variants to Rs 3 lakh on the Tiguan R-Line. Customers can contact their nearest
Volkswagen showroom for detailed pricing and offers.
With the festive season around the corner, Volkswagen
expects the updated pricing and additional offers to strengthen demand for its
portfolio, which currently includes the Taigun, Virtus, Tiguan R-Line, and Golf
GTI in India.
From September 22, 2025, the Goods and Services Tax (GST) on
small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and
ambulances will be reduced from 28% to 18%. This move is set to lower the
prices of popular budget cars such as the Maruti Suzuki Alto, Hyundai Grand
i10, and Tata Tiago by nearly 10%, while mass-market two-wheelers including the
Honda Shine, Bajaj Pulsar, Honda Activa, and Hero Splendor will also become
more affordable.
The GST Council has also simplified taxation by introducing
a uniform 18% rate on all auto parts, removing earlier disparities caused by HS
code classifications. The lower slab will extend to small petrol and diesel
hybrid cars within the specified limits (petrol up to 1,200cc/4,000mm and
diesel up to 1,500cc/4,000mm).
On the other hand, luxury cars, large SUVs (over 4,000mm
with petrol engines above 1,200cc and diesel above 1,500cc), and motorcycles
over 350cc will now be taxed at 40%, making them costlier.
Agriculture machinery too stands to benefit, as GST on
tractors and equipment such as harvesters, threshers, soil preparation tools,
fodder balers, grass sowing machines, hay movers, and composters has been
slashed from 12% to 5%.
Source:
https://www.indiatoday.in/auto/latest-auto-news/story/volkswagen-prices-drop-by-up-to-rs-326-lakh-after-gst-reduction-2784881-2025-09-10
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