Volkswagen India has announced that it will be passing on the full benefits of the revised Goods and Services Tax (GST 2.0) structure to its customers, resulting in significant price reductions across its model range, effective from September 22, 2025. This move comes in response to the government's recent decision to overhaul the taxation on passenger vehicles by eliminating the additional cess and introducing a uniform GST rate.
Under the new tax regime, Volkswagen models will see considerable price cuts. The Virtus will receive benefits of up to Rs 66,900, while the Taigun will see reductions of up to Rs 68,400, depending on the variant. The largest price cut is reserved for the Tiguan R-Line, which will now be cheaper by as much as Rs 3,26,900.
The revised GST structure has been implemented ahead of the festive season. Previously, passenger vehicles attracted a combined tax of approximately 48–50 percent, including cess, but the new system has simplified the rate to a flat 40 percent, directly reducing ex-showroom costs.
In addition to the GST-linked price reductions, Volkswagen is also offering limited-period benefits ranging from Rs 1.61 lakh on select Taigun trims to Rs 3 lakh on the Tiguan R-Line. These offers are available for a limited time, with some expiring on September 21, 2025. Customers are encouraged to contact their nearest Volkswagen showroom for detailed pricing information and to take advantage of these offers.
The Volkswagen Virtus is currently priced between Rs 11.55 lakh and Rs 19.39 lakh (ex-showroom), while the Taigun ranges from Rs 11.79 lakh to Rs 19.83 lakh. The Tiguan R-Line is currently sold at Rs 48.99 lakh (ex-showroom). These prices are set to decrease with the implementation of the new GST rates on September 22, 2025.
The VW Tiguan R-Line is powered by a 2.0-liter, 4-cylinder, turbo petrol engine that produces 190 PS of power and 320 Nm of torque. It is paired with a 7-speed DSG gearbox, which sends power to all four wheels. The Virtus and Taigun are offered with two engine options: a 1.5-liter, 4-cylinder, turbo petrol engine that produces 148bhp of power and 250Nm of torque, paired with a 7-speed dual-clutch automatic gearbox or a manual transmission, and a 1.0-liter, 3-cylinder, turbo petrol engine with 115 hp power and 178 nm torque, offered with a 6-speed torque converter automatic or a manual transmission.
Volkswagen's decision to pass on the full benefits of GST 2.0 to customers is expected to boost demand for its portfolio during the festive season. The company aims to make its sedans and SUVs more accessible than ever before with the revised pricing and additional discounts. This move also positions Volkswagen for enhanced competition in the Indian automotive market.
