GST 2.0 Effect: Skoda Kylaq Prices To Be Slashed By Up To Rs 1.19 Lakh From Sept 22

Skoda has announced that prices of the Kyaq subcompact SUV will be slashed by up to Rs 1.19 lakh with effect from September 22, 2025. This follows a similar announcement made by the company earlier in the week, in which it announced a price cut of up to Rs 3.28 lakh on the Slavia, Kushaq, and Kodiaq.

Also read: Skoda Kushaq, Slavia, Kodiaq Prices Slashed Post GST Reform

The revisions come as the Indian government announced new GST tax slab rates for automobiles as part of its new GST reforms. Previously, all vehicles were charged at 28 per cent GST along with an additional cess depending on the engine displacement, vehicle category and size, taking the effective rate up to 50 per cent. Now vehicles measuring under 4 metres in length and with petrol engines smaller than 1200 cc and diesel engines smaller than 1500 cc are taxed at 18 per cent. All other internal combustion vehicles are taxed at 40 per cent while EVs continue to attract 5 per cent GST. Cess has been discontinued.

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Launched late last year, the Kylaq has proven pivotal in boosting Skoda’s sales, with the brand on course to have its best-ever year in India. The company sold 36,194 units in the first half of calendar year 2025, registering a significant 134 per cent growth over the same time period in 2024. The Kylaq is offered with the company’s tried and tested 1.0 TSI turbo-petrol engine paired with manual and automatic gearbox options spread across four trim levels.