GST Impact on Skoda Cars

The launch of GST 2.0 has reshaped the Indian car market, with brands across categories revising their pricing strategies. Among them, Skoda Auto India has passed on the benefits directly to buyers by announcing major price cuts across its entire portfolio. Effective from 22 September 2025, Skoda cars now come with reductions ranging from ₹37,000 on entry trims to as much as ₹3.28 lakh on its flagship SUV.

For Skoda, which caters to both mid-size family buyers and premium SUV enthusiasts, this update is a significant milestone. The GST-driven price cuts make popular models like the Slavia and Kushaq more approachable, while high-end vehicles like the Kodiaq now present an even stronger case against rivals in the luxury SUV market.

In this article, we break down the model-wise GST 2.0 impact on Skoda cars, analyze what it means for different segments, and provide insights into how the brand stands to benefit.

GST Impact on Skoda Cars up to 1200cc and up to 4000mm

This is the small-car GST bracket, covering vehicles with engines up to 1200cc and length under 4000 mm. Skoda has two models here – Kushaq (1.0 TSI variants) and Kylaq. Both have benefitted significantly from GST 2.0 updates.

• The Kushaq 1.0 TSI trims, despite being a compact SUV, fall in this bracket and have received reductions of up to ₹65,828.
  
• The Kylaq, Skoda’s latest sub-4m SUV, has seen price cuts of up to ₹1.19 lakh, making it a strong rival to subcompact SUVs like Hyundai Venue and Kia Sonet.
  

Skoda Cars in the up to 1200cc, up to 4000mm Segment

Model	Price Before GST Update	Price After GST Update	Difference
Skoda Kushaq (1.0 TSI)	₹11.04 lakh	₹10.66 lakh	₹65,828 reduction announced (base trims ~₹37,897).
Skoda Kylaq	₹8.74 lakh	₹7.55 lakh	₹70,000 to ₹1.19 lakh

GST Impact on Skoda Cars more than 1200cc and more than 4000mm

Cars exceeding 4m in length or equipped with engines above 1200cc attract higher GST slabs. In Skoda’s portfolio, the Slavia sedan and the Kodiaq SUV sit here.

• The Slavia, at 4,541 mm, has become more appealing with price cuts of up to ₹63,207, challenging Hyundai Verna and Honda City head-on.
  
• The Kodiaq, Skoda’s flagship SUV, has received the steepest cut in the lineup — ₹3.28 lakh — positioning it more competitively against Toyota Fortuner and Jeep Meridian.

Skoda Cars in the more than 1200cc, more than 4000mm Segment

Model	Price Before GST Update	Price After GST Update	Difference
Skoda Slavia	₹13.63 lakh	₹13.00 lakh	₹63,207
Skoda Kodiaq	₹41.64 lakh	₹38.36 lakh	₹3.28 lakh

Broader Impact of GST 2.0 on Skoda

The GST-driven price cuts are not just about immediate affordability, they also carry long-term implications for Skoda and its customers:

1. Better Resale Value: With more competitive ex-showroom pricing, Skoda models are likely to retain value better in the used car market.
   
2. Boost in Sales Momentum: The festive season has already seen heightened demand, and the price drops further add to the momentum.
   
3. Enhanced Customer Appeal: For fence-sitters, especially in the mid-size SUV segment, these reductions could be the deciding factor in choosing Skoda over a rival.
   
4. Luxury Segment Competitiveness: The Kodiaq now competes more confidently against established segment leaders like Toyota Fortuner, potentially converting buyers looking for a balance of luxury and practicality.

Summary

The GST 2.0 update has positively influenced Skoda’s entire Indian portfolio:

• Compact cars (Slavia, Kushaq): Moderate cuts of ₹37,000–₹63,000 improve affordability and competitiveness.
  
• Mid-size to premium SUVs (Kylaq, Kodiaq): Significant reductions, particularly ₹3.28 lakh on the Kodiaq, make these models attractive for buyers exploring luxury or near-luxury options.
  
• Market positioning: Skoda now stands out as a brand offering European build quality and advanced features at prices that are significantly more aligned with customer expectations.

FAQs about GST Impact on Skoda Cars