The Kylaq, introduced as Skoda’s entry-level SUV for the Indian market, is currently available in four trims—Classic, Signature, Prestige, and Style—with both manual and automatic transmission options. Under the new GST structure, the manual variants will be cheaper by up to Rs 1.10 lakh, while the biggest cut of Rs 1.19 lakh applies to the Prestige automatic.
The price drop stems from the government’s decision to reduce the GST rate on small petrol cars with engines under 1,200cc and a length of less than four metres. Previously, such cars attracted a 29% GST (including 1% cess). Now, they will be taxed at 18%, marking an 11 percentage-point reduction. The Kylaq, which qualifies under this category, directly benefits from this revision.
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The move is expected to make the Kylaq a stronger contender in India’s crowded sub-4-metre SUV space, where it competes with models like the Maruti Brezza, Hyundai Venue, Kia Sonet, and Tata Nexon. Skoda is banking on this price correction to attract buyers who were earlier hesitant due to its higher pricing.
Industry experts believe the GST cut could drive a fresh wave of demand for compact cars and SUVs, boosting overall sales in the festive season. Skoda has urged prospective buyers to wait until September 22, when the revised prices will officially take effect across dealerships.
With this tax benefit, the Kylaq is now positioned more competitively, combining European build quality with improved affordability—an attractive proposition for Indian car buyers.
