Volkswagen India to reduce car prices by up to Rs 3.27 lakh, buyers to get full GST benefit

Volkswagen India announced on September 10 a significant price cut across its entire model range, effective September 22, 2025, aligning with the implementation of the revamped GST structure.

The new prices are meant to pass on the full benefit of the GST rate reduction to customers, the company said.

New price list

• Tiguan R-Line SUV prices cut by up to Rs 3,26,900
• Compact SUV Taigun to be cheaper by up to Rs 68,400
• Sedan Virtus' price slashed by up to Rs 66,900

It may be noted here that India’s goods and services tax (GST) system has undergone a major rationalisation, collapsing four tax slabs into just two principal rates (5% and 18%), supplemented by a 40% slab for high–end consumer goods, including larger and luxury vehicles.

These changes, effective September 22, 2025, offer reduced effective tax burdens on certain vehicles due to the removal of compensatory cesses.