The Škoda Kylaq has been designed as a compact SUV for India, combining European styling with practical dimensions and a modern 1.0-litre turbo-petrol engine. Positioned to appeal to urban buyers and young families, it offers the premium touch that Škoda is known for, but in a smaller, more accessible package. With SUV-inspired looks and a robust feature list, the Kylaq caters to those wanting sophistication and everyday usability in one vehicle.
Until recently, however, cars like the Kylaq carried a higher tax burden under the old GST framework. Being a petrol car under 4 metres with an engine capacity of 1.0 litres, it fell into the small car tax bracket, attracting 28% GST plus 1% cess, totalling 29%. This directly inflated its ex-showroom price and made it less affordable compared to what buyers might expect in the entry SUV space.
With the rollout of GST 2.0, effective from September 22, 2025, this structure has been rationalised. The cess has been eliminated, and the Kylaq now falls under a simplified 18% GST slab. This results in an 11% reduction in total tax, translating into a price drop of ₹70,000–₹1.19 lakhs depending on the variant. The Kylaq now offers even better value, strengthening its competitive edge in the compact SUV category.