Audi India cuts car prices by up to ₹7.8 lakh following GST 2.0 reforms; check changes for each model here

Audi India has announced significant price reductions across its vehicle lineup, ranging from ₹2.6 lakh to over ₹7.8 lakh, effective from September 22, 2025.

This move comes in response to the government's Goods and Services Tax (GST) overhaul, aimed at simplifying the tax structure and providing relief to consumers.

The new GST regime, referred to as GST 2.0, consolidates the previous four tax slabs into two—5% and 18%—with a special 40% slab for luxury goods, including high-end automobiles.


The revised tax structure eliminates the 20–22% compensation cess previously levied on luxury vehicles, effectively reducing the overall tax burden on such cars. Under the new system, luxury vehicles are taxed at a flat 40%, translating into savings of approximately 8–10% for consumers

Audi's price adjustments reflect these changes, making its range of luxury cars and SUVs more accessible to a broader customer base.

Audi Q3
Old Price- 46,16,000
New Price- 43,07,000

Audi A4
Old Price: 48,89,000
New Price: 46,25,000

Audi Q7
Old Price: 92,29,000
New Price: 86,14,000

Audi Q8
Old Price: 1,17,49,000
New Price: 1,09,66,000

Audi Q5
Old Price: 68,30,000
New Price: 63,75,000

Audi A6
Old Price: 67,38,000
New Price: 63,74,000

The implementation of GST 2.0 is expected to have a significant impact on the Indian automobile market. While luxury vehicle buyers stand to benefit from reduced prices, dealerships are facing challenges due to the impending lapse of the compensation cess.

With existing inventory purchased under the previous tax regime, dealers may incur financial setbacks, estimated at around ₹2,500 crore, as they are unable to recover or claim a refund for the overpaid cess

Overall, the GST reforms aim to stimulate consumer spending and boost demand in the automobile sector, providing a festive boost to both consumers and manufacturers.