Mumbai, September 12, 2025 – Škoda Auto Volkswagen India Private Limited (SAVWIPL), which represents six iconic automotive brands in India – Škoda, Volkswagen, Audi, Porsche, Lamborghini, and Bentley – has welcomed the Government of India’s decision to rationalise and simplify GST rates on automobiles.

The company described the move as a landmark reform that will strengthen the automotive ecosystem while enhancing affordability for customers across segments. SAVWIPL also reaffirmed its commitment to ensuring that the benefits of the tax changes are passed on to buyers.

A Balanced Approach: Affordability and Luxury

Commenting on the reform, Piyush Arora, MD & CEO of SAVWIPL, said:
“Rationalisation and simplification of GST is a welcome step. The shift to an 18% slab for small cars will enhance affordability and support stronger demand in the high-volume segment. At the same time, the 40% slab for premium and luxury vehicles provides clarity and simplifies taxation, helping customers make informed choices with greater confidence.”

With a diverse portfolio spanning accessible brands like Škoda and Volkswagen to luxury marques such as Audi, Porsche, Lamborghini, and Bentley, SAVWIPL highlighted the significance of reforms that strike a balance between accessibility and aspiration.

Strengthening India’s Automotive Future

Arora further noted that such reforms could boost market sentiment, encourage demand across categories, and create a more conducive environment for long-term growth. He emphasized that the government’s move signals its intent to create a more equitable, future-ready tax ecosystem, ultimately supporting India’s ambition to be a leading global automotive hub.

Industry-Wide Impact

The rationalisation of GST rates is expected to:

• Enhance affordability of small cars and drive mass-market growth.
• Provide clarity in the premium and luxury segments, supporting customer confidence.
• Stimulate demand across multiple categories of vehicles.
• Strengthen India’s position in the global automotive value chain.

As one of the key players in India’s automotive industry, SAVWIPL is optimistic that this reform will unlock new growth opportunities while benefiting customers across its wide-ranging portfolio.