Volkswagen's GST Reform Price Drop: Taigun Gets Cheaper By Over ₹1.6 Lakh

Volkswagen has announced sharp price cuts across its India line-up after the GST 2.0 tax reform. The biggest impact is on the Taigun SUV, which now costs up to ₹1.63 lakh less depending on the variant. The new prices are effective from September 22, 2025, just ahead of the festive season.

Taigun Sees Big Reductions

The Taigun, which competes with the Hyundai Creta and Kia Seltos, now carries lower ex-showroom prices across multiple trims. Reductions range from ₹41,000 to ₹1.63 lakh.

The steepest cuts are on the manual transmission versions of the 1.5 TSI GT MT PLUS Sport and Chrome editions. Both are now priced at ₹17 lakh, down from ₹18.63 lakh and ₹18.38 lakh earlier.

This places some of the higher variants of the Taigun closer to mid-range SUVs from rivals, widening its appeal among buyers in the ₹15–17 lakh budget band.

Virtus And Tiguan Also Cheaper

The Virtus sedan has also been repriced. The entry Comfortline MT is down by ₹40,000, while DSG automatic trims see cuts of up to ₹67,000. This puts the Virtus in a stronger position against the Honda City and Hyundai Verna.

Volkswagen’s flagship Tiguan R-Line has seen the most dramatic reduction in absolute terms. Its price has dropped by ₹3.27 lakh, bringing it down from ₹49 lakh to ₹45.73 lakh. The lower sticker price could help it appeal to buyers considering premium SUVs just below the luxury bracket.

Why Prices Have Fallen

The cuts follow the GST 2.0 reform announced earlier in September. Small cars now attract 18 percent GST instead of 28 percent, while larger vehicles and SUVs are taxed at a flat 40 percent instead of multiple slabs that often pushed taxes above 45 percent. Auto components also see a lower 18 percent GST rate, which may ease service and maintenance costs over time.

With simpler slabs and lower overall rates, manufacturers have been able to reduce showroom prices. Major rivals like Mahindra, Tata, Hyundai and Mercedes-Benz have also rolled out revised pricing.

What Buyers Get Now

Despite the lower prices, the cars themselves remain unchanged. The Taigun continues with its 1.0-litre turbo petrol engine producing 115 Bhp-175 Nm and a 1.5-litre turbo petrol making 148 Bhp-250 Nm, both paired with manual or automatic options. The Virtus and Tiguan also carry forward their current features and specifications.

Dealerships have reported a rise in enquiries since the announcements. For buyers, the cuts make higher trims more accessible, with features such as automatic gearboxes and premium interiors now within budgets that earlier covered only entry-level variants.

The festive season typically accounts for up to a third of annual auto sales in India. With GST 2.0 lowering taxes and Volkswagen trimming prices, the company is hoping to capture stronger demand in October and November.