Škoda Auto India Announces GST Benefits Up To ₹3.3 Lakh, Additional Discounts Till September 21

Czech carmaker announces significant discounts and GST benefits across three models until 21st September, as industry grapples with sluggish sales

Škoda Auto India has unveiled attractive limited period offers across its core lineup, combining upcoming GST benefits with additional discounts worth up to ₹2.5 lakh. The announcement comes as manufacturers scramble to boost sales ahead of the festive season whilst competitors roll out similar schemes to counter declining market volumes. 

The company's promotional campaign covers three models with varying benefit levels. The Kushaq compact SUV leads with combined savings including GST benefits up to ₹66,000 plus additional benefits reaching ₹2.5 lakh. The Slavia sedan offers GST benefits up to ₹63,000 alongside additional discounts of ₹1.2 lakh, whilst the premium Kodiaq SUV provides the highest GST benefits at ₹3.3 lakh combined with additional offers worth ₹2.5 lakh. 

Notably absent from these promotional offers is Škoda's newest model, the Kylaq sub-compact SUV. Industry sources suggest this selective approach could indicate slower-than-expected sales performance for the older models, necessitating aggressive discount strategies to clear inventory. The Kylaq, launched in late 2024, has been performing well with 4,949 units sold in May 2025, whilst Kushaq sales declined sharply by 44% year-on-year to 644 units in May 2025. 

Industry-Wide Discount Battle

Škoda's rivals have responded with their own aggressive pricing strategies. Tata Motors announced it will pass on the full GST reduction benefit to customers from 22nd September, offering price cuts ranging from ₹75,000 on the Tiago to ₹1.55 lakh on the Nexon. Toyota has slashed prices by up to ₹3.49 lakh on the Fortuner, with the company fully passing on GST benefits across its range. 

Mahindra has taken the lead by implementing price reductions from 6th September itself, offering savings up to ₹1.56 lakh on select models. The company's XUV3XO diesel variant sees the maximum reduction at ₹1.56 lakh, whilst petrol variants benefit from ₹1.40 lakh cuts. 

Market Context and GST Reforms

The promotional blitz coincides with significant GST reforms effective from 22nd September 2025. Small cars with engines up to 1,200cc (petrol) or 1,500cc (diesel) and length under 4 metres will see GST rates drop from 28% to 18%. Larger SUVs and premium vehicles will attract a flat 40% GST rate, down from the previous complex structure of 28% GST plus compensation cess that could reach up to 50%. 

These reforms arrive at a crucial time for the Indian automotive sector, which has been witnessing sluggish sales growth. The new GST structure aims to simplify taxation whilst making vehicles more affordable, particularly benefiting entry-level and mid-segment buyers during the upcoming festive season. 

The selective nature of Škoda's offer strategy, excluding the well-performing Kylaq whilst heavily discounting the Kushaq, Slavia, and Kodiaq, suggests the company is addressing model-specific sales challenges rather than adopting a blanket promotional approach. This targeted discount strategy reflects broader industry pressures as manufacturers compete intensely for market share in India's evolving automotive landscape.