Volkswagen Slashes Prices by Up to ₹3.26 Lakh After GST Reduction — A Powerful Festive Bonanza for Car Buyers


Volkswagen has given Indian car buyers a major reason to celebrate this festive season by announcing a massive price reduction across its lineup, with savings of up to ₹3.26 lakh. This exciting move comes right after the rollout of GST 2.0 on September 22, 2025, as the German automaker confirmed it will pass on the full tax benefits directly to customers.

By lowering prices on its popular models — including hatchbacks, sedans, and SUVs — Volkswagen aims to make its cars far more accessible for a wider audience. What makes this announcement even more attractive is the timing: the price cuts align perfectly with the festive season, traditionally one of the busiest car-buying periods in India.

Coupled with limited-period festive offers, flexible financing options, and special edition variants, this strategic pricing overhaul is expected to trigger a significant surge in demand, giving customers the opportunity to own premium Volkswagen vehicles at the most competitive prices yet.

This landmark decision not only strengthens Volkswagen’s market position but also brings a powerful festive bonanza for car enthusiasts looking to upgrade or buy their dream car during this high-demand period.

Massive Price Cuts Across Volkswagen Lineup

Under the revamped GST 2.0 structure, Volkswagen has announced price reductions across its entire Indian portfolio. Depending on the variant, the price benefits are substantial:

  • Volkswagen Virtus – up to ₹66,900 off
  • Volkswagen Taigun – up to ₹68,400 off
  • Volkswagen Tiguan R-Line – a staggering ₹3,26,900 off

These revised prices will officially take effect from September 22, 2025, when GST on small cars is reduced from 28% to 18%. This move is expected to make premium cars more budget-friendly, especially for aspirational buyers in India’s growing urban markets.

Additional Limited-Period Festive Offers

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To further sweeten the deal, Volkswagen India is offering exclusive festive benefits alongside the GST-linked price cuts. Buyers can grab:

  • Benefits of up to ₹1.61 lakh on select Taigun variants
  • Benefits of up to ₹3 lakh on the Tiguan R-Line

These additional offers will be available for a limited period, giving buyers a strong incentive to make their purchase during the festive season. Interested customers are advised to visit their nearest Volkswagen showroom to explore variant-wise pricing and offers.

GST 2.0: A Game Changer for the Indian Auto Industry

The GST Council’s new tax structure (GST 2.0) is reshaping vehicle pricing across India. From September 22, 2025, the GST on several vehicle categories will be slashed, including:

  • Small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances – down from 28% to 18%
  • Auto parts – now under a uniform 18% rate (eliminating classification disparities)
  • Small hybrid cars (petrol up to 1,200cc/4,000mm and diesel up to 1,500cc/4,000mm) – also under the lower 18% bracket

This is set to lower the prices of other popular vehicles as well, such as Maruti Suzuki Alto, Hyundai Grand i10, and Tata Tiago, along with best-selling two-wheelers like Honda Shine, Bajaj Pulsar, Honda Activa, and Hero Splendor.

Luxury Cars and Big Bikes to Cost More

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While most mass-market vehicles get cheaper, luxury cars and large SUVs (over 4,000mm, petrol engines above 1,200cc, diesel above 1,500cc) along with motorcycles above 350cc will now attract a higher GST of 40%, making them costlier. This move balances the market, ensuring affordability for the masses while taxing high-end luxury segments appropriately.

Agricultural Machinery Gets a Boost

Adding to the positive ripple effect, GST on tractors and agricultural equipment such as harvesters, threshers, soil preparation tools, fodder balers, grass sowing machines, hay movers, and composters has been cut from 12% to just 5%. This is expected to lower farming costs and support rural growth.

Final Takeaway: The Perfect Time to Buy a Volkswagen

With Volkswagen slashing prices by up to ₹3.26 lakh after GST reduction, and with limited-time festive offers, this is undoubtedly the perfect window for Indian car buyers to make their dream purchase. The combination of lower GST rates and attractive showroom deals makes Volkswagen’s lineup more value-packed than ever — setting the stage for a festive season sales surge.

Note: All information and images used in this content are sourced from Google. They are used here for informational and illustrative purposes only.

Frequently Asked Questions (FAQ)

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What is the reason behind the recent price drop in Volkswagen cars?

Volkswagen India has reduced prices across its models to pass on the full benefits of the revised GST 2.0 structure to customers. The new tax rates will take effect from September 22, 2025, resulting in lower prices for several car models.

Which Volkswagen models are getting a price cut under GST 2.0?

Popular models such as the , , and are receiving significant price reductions. The Virtus gets up to ₹66,900 off, the Taigun up to ₹68,400 off, and the Tiguan R-Line up to ₹3,26,900 off, depending on the variant.

When will the revised Volkswagen prices take effect?

The new prices will be applicable from September 22, 2025, coinciding with the implementation of GST 2.0.

Are there any additional offers apart from the GST-based price cuts?

Yes. Volkswagen is offering limited-period festive benefits, including discounts of up to ₹1.61 lakh on select Taigun variants and up to ₹3 lakh on the Tiguan R-Line.

How will GST 2.0 impact the overall automobile sector in India?

GST 2.0 will reduce the tax on small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances from 28% to 18%. It will also bring all auto parts under a uniform 18% rate and include small hybrid cars in the lower tax bracket, making vehicles more affordable for buyers.

Which vehicles will become more expensive under GST 2.0?

Luxury cars, large SUVs (over 4,000mm with petrol engines above 1,200cc and diesel engines above 1,500cc), and motorcycles over 350cc will now be taxed at 40%, making them more expensive than before.

Will GST 2.0 benefit agricultural machinery as well?

Yes. The GST on agricultural machinery such as tractors, harvesters, threshers, soil preparation tools, fodder balers, grass sowing machines, hay movers, and composters has been reduced from 12% to 5%, which will help lower farming costs.

How can customers avail these Volkswagen offers?

Customers can visit their nearest Volkswagen showroom to get detailed variant-wise pricing and learn more about the limited-time festive benefits available.

Click Here For More Information: 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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