Audi Cuts Luxury Car Prices Under GST 2.0: Flagship Q8 SUV Now Rs. 8 Lakh Cheaper

Audi India has responded to GST 2.0 reforms with sweeping price corrections across its sedan and SUV lineup. Effective 22 September 2025, reductions range from ₹2.6 lakh to ₹7.8 lakh, marking one of the biggest price resets in the luxury car market.
The compact Q3 now starts at ₹43.07 lakh, after a cut of ₹3.07 lakh. This repositions the model more attractively against premium non-luxury SUVs that were encroaching on its price band. The Q5, Audi’s highest-volume SUV, is now ₹4.55 lakh cheaper at ₹63.75 lakh.
The larger Q7 and flagship Q8 show the most dramatic changes, reduced by ₹6.15 lakh and ₹7.83 lakh respectively. At ₹1.09 crore, the Q8 now sits just under the 1.1 crore psychological threshold, a shift that could draw in buyers who had hesitated at its earlier price.
The sedan range also sees meaningful corrections. The A4, Audi’s entry point, is down by ₹2.64 lakh to ₹46.25 lakh. The A6, a key model in the executive sedan space, is now ₹63.74 lakh after a reduction of ₹3.64 lakh. These cuts come at a time when sedans face demand pressure due to the rising preference for SUVs. By repositioning both the A4 and A6, Audi aims to slow the migration away from sedans while keeping them attractive options for traditional buyers.
Luxury cars previously faced close to 50 per cent tax under the old regime. The simplified 40 per cent GST rate allows space for genuine savings to be passed on to consumers. Audi’s decision to act decisively comes as it seeks to strengthen its presence against BMW and Mercedes-Benz, both of which have enjoyed stronger sales momentum in India. The price drops could trigger competitive responses across the German trio, creating rare movement in what is usually a price-stable segment.
The announcement is timed for the festive season, when many luxury purchases are made. While price is not the sole motivator in this category, reductions of several lakhs matter even to affluent buyers, especially those considering stepping up to larger models. The Q7’s ₹6 lakh cut or the Q8’s near-₹8 lakh reduction represent savings that can offset ownership costs like insurance and registration.
Audi’s challenge will be to maintain brand perception while pursuing volume. Luxury buyers evaluate service quality, dealership experience and resale value alongside price. Lower prices may draw in new customers, but sustaining growth requires consistent premium ownership standards. If Audi manages both, the GST 2.0 reform could serve as the catalyst for its strongest year in India in recent memory.
Audi's big price drops across the range is similar to the cuts enforced by its primary rivals - BMW and Mercedes Benz. These cuts are likely to make Audis more attractive than ever before, and people buying entry-premium brands such as the more expensive Skodas, Volkswagens and Volvos could certainly be tempted in opting for the four ringed Germans.