Audi India Slashes Prices by Up to ₹7.8 Lakh Following GST

In a significant move poised to reshape the luxury car market in India, Audi India has announced substantial price reductions across its entire model portfolio. The German luxury carmaker is passing on the full benefits of the recent Goods and Services Tax (GST) reforms, making its premium sedans and SUVs more accessible to Indian consumers just ahead of the crucial festive season.

The price cuts, which come into effect on September 22, 2025, range from ₹2.6 lakh to a massive ₹7.8 lakh, depending on the model. This decision aligns with the government’s “GST 2.0” initiative, which has simplified the tax structure on automobiles by replacing the earlier 28% GST plus an additional cess with a new, uniform 40% GST slab for luxury and larger vehicles. Previously, these high-end cars were subject to a total tax burden of up to 50%, with a 22% cess on top of the GST. The removal of this cess is the primary reason for the significant price drop.

Model-Wise Details of the Price Reduction

The price revision has made some of Audi’s most popular models considerably more affordable, with the biggest benefits seen on its high-end SUV lineup. Here is a detailed breakdown of the price cuts:

• Audi Q8: The flagship SUV has received the most significant price reduction of over ₹7.8 lakh. The Q8, which was previously priced at ₹1.17 crore, will now start at ₹1.09 crore, making it a more competitive offering in the premium SUV segment.
• Audi Q7: The popular full-size SUV is now cheaper by ₹6.15 lakh. Its price has been reduced from ₹92.29 lakh to ₹86.14 lakh, offering a substantial saving for prospective buyers.
• Audi Q5: The mid-range Q5 SUV sees a price drop of ₹4.55 lakh. Priced at ₹63.75 lakh, it is now more accessible than its previous price of ₹68.30 lakh.
• Audi Q3: The entry-level compact SUV from Audi has also seen a healthy price cut of ₹3.07 lakh. Its new starting price is ₹43.07 lakh, down from ₹46.14 lakh, making it an attractive proposition for those entering the luxury segment.
• Audi A6: The executive sedan, A6, now comes with a price benefit of ₹3.64 lakh, with its price revised from ₹67.38 lakh to ₹63.74 lakh.
• Audi A4: The entry-level sedan A4 is now more affordable by ₹2.64 lakh. Its price has been reduced from ₹48.89 lakh to ₹46.25 lakh, making it a more compelling choice for sedan enthusiasts.

Industry-Wide Impact and Future Outlook

Audi is not the only manufacturer to announce such price changes. Other luxury carmakers like Mercedes-Benz and BMW have also extended similar benefits to their customers in response to the GST overhaul. This industry-wide move is expected to intensify competition and provide a much-needed boost to the luxury car market. The timing is particularly strategic, as the festive season—a period of high consumer spending—is just around the corner. By making premium vehicles more affordable, these companies are aiming to attract a wider customer base and drive sales momentum.

The head of Audi India, Balbir Singh Dhillon, has welcomed the GST reforms, stating that the updated prices will make the brand’s luxury cars and SUVs more accessible and add momentum to customer demand. The reforms not only simplify the tax structure but also reflect a government strategy to stimulate domestic consumption and stabilize the business environment for the automotive sector. This rationalization of taxes is seen as a key step toward a more efficient and predictable tax regime, which is expected to leave a lasting positive legacy on India’s dynamic automobile industry.