Volkswagen India has officially announced a massive price cut across its portfolio following the implementation of GST 2.0 reforms, which come into effect on 22nd September 2025. The company confirmed that it will pass on the full benefit of the revised tax structure to customers, resulting in savings of up to ₹3.26 lakh on its premium models.
This move comes at a crucial time ahead of the festive season, when customer demand for cars typically peaks. With lower prices and attractive festive offers, Volkswagen aims to boost its market presence in India’s highly competitive automobile segment.
Model-Wise GST 2.0 Benefits for Volkswagen Cars
| Volkswagen Model | Maximum Price Reduction (₹) | Notes |
|---|---|---|
| Volkswagen Virtus | Up to ₹66,900 | Mid-size sedan, benefits across select variants under the new GST slab. |
| Volkswagen Taigun | Up to ₹68,400 | Compact SUV sees a meaningful cut, improving its value against rivals like Creta and Grand Vitara. |
| Volkswagen Tiguan R-Line | Up to ₹3,26,900 | Flagship SUV benefits the most due to higher pre-GST taxes; now more competitive in premium SUV space. |
Why the Prices Dropped
- Under GST 2.0, cars under specific engine capacities and dimensions enjoy lower tax rates compared to the earlier structure.
- SUVs and premium models like the Tiguan R-Line that earlier carried higher cess now see the biggest reduction.
- Volkswagen India has confirmed that all reductions will be passed on directly to the customer, without any hidden exclusions.
What This Means for Buyers
- Volkswagen Virtus – Already a strong player in the sedan segment, the Virtus now becomes more price-competitive against the Honda City, Hyundai Verna, and Skoda Slavia.
- Volkswagen Taigun – With an effective reduction of nearly ₹70,000, the Taigun is now positioned more aggressively in the hotly contested compact SUV market.
- Volkswagen Tiguan R-Line – The biggest gainer, with savings of over ₹3 lakh, making it one of the most attractive premium SUVs post GST 2.0.
Industry Impact
- The GST 2.0 reform is expected to boost demand across the automotive sector, especially in the upcoming festive period.
- Price-sensitive Indian customers are likely to consider Volkswagen’s German engineering as a better deal now.
- Competitors in both sedan and SUV segments will feel the pressure as Volkswagen models become more affordable.
Final Verdict
The Volkswagen GST 2.0 price cut is one of the biggest reductions in recent times, particularly for premium models like the Tiguan R-Line. With savings ranging from ₹66,900 to ₹3,26,900, buyers can now look at Volkswagen cars as stronger value propositions in their respective segments.
If you are planning to buy a new sedan or SUV, September 22, 2025, onwards is the best time to book your Volkswagen and take advantage of both the GST reduction and festive offers.