The Indian automotive landscape witnessed a significant transformation on September 22, 2025, when the revolutionary GST 2.0 reforms took effect. Among the biggest beneficiaries of this tax restructuring is the Škoda Kylaq, which has emerged as one of the most compelling value propositions in the compact SUV segment with price reductions of up to ₹1.19 lakh.
GST 2.0: A Game-Changer for Small Cars
The implementation of GST 2.0 has fundamentally altered the taxation structure for automobiles in India. Under the previous regime, small cars like the Kylaq faced a punitive tax burden of 28% GST plus 1% cess, totaling 29%. The new framework eliminates the cess entirely and brings these vehicles under a simplified 18% GST slab, resulting in an effective 11% reduction in total tax burden.
This restructuring specifically benefits vehicles with petrol engines up to 1200cc, diesel engines up to 1500cc, and an overall length not exceeding 4000mm. The Kylaq, with its 999cc turbo-petrol engine and compact dimensions, falls perfectly into this category.
Škoda Kylaq: New Pricing Structure Post GST 2.0
The GST 2.0 implementation has delivered substantial savings across all Kylaq variants. Here’s the comprehensive breakdown of the new pricing structure:
| Varients | Old Price | New Price | Savings |
|---|---|---|---|
| Classic MT | ₹8.25 lakh | ₹7.55 lakh | ₹70,000 |
| Signature MT | ₹9.85 lakh | ₹9.00 lakh | ₹85,000 |
| Signature AT | ₹10.95 lakh | ₹10.00 lakh | ₹95,000 |
| Signature+ MT | ₹11.30 lakh | ₹10.34 lakh | ₹96,000 |
| Signature+ AT | ₹12.40 lakh | ₹11.34 lakh | ₹1.06 lakh |
| Prestige MT | ₹12.94 lakh | ₹11.84 lakh | ₹1.10 lakh |
| Prestige AT | ₹13.99 lakh | ₹12.80 lakh | ₹1.19 lakh |
All prices are ex-showroom and sourced from various industry reports.
The top-spec Prestige AT variant sees the maximum benefit with savings of ₹1.19 lakh, while even the entry-level Classic variant becomes more accessible with a ₹70,000 reduction.
Hidden Benefits Beyond Price Reduction
The price cuts have unlocked additional advantages that many buyers might overlook. The Signature AT variant, now priced at ₹9.99 lakh, falls below the crucial ₹10 lakh threshold, triggering two significant benefits:
Lower Road Tax Slab: Vehicles priced below ₹10 lakh attract only 13% road tax instead of 15%, resulting in additional savings on registration costs.
TCS Exemption: Vehicles priced below 10 lakh are exempt from Tax Collected at Source (TCS), which is normally charged at 1% of the ex-showroom price.
Technical Specifications: European Engineering at Its Core
The Škoda Kylaq is powered by a 1.0-litre TSI turbo-petrol engine that produces 114 bhp at 5000-5500 rpm and 178 Nm of torque at 1750-4000 rpm. This three-cylinder engine is paired with either a 6-speed manual or a 6-speed torque converter automatic transmission.
Key Technical Highlights:
- Engine Displacement: 999cc
- Fuel Efficiency: 19.68 kmpl (manual), 19.05 kmpl (automatic)
- Ground Clearance: 189mm
- Boot Space: 446 litres (1,265 litres with rear seats folded)
- Wheelbase: 2,566mm
- Overall Dimensions: 3,995mm (L) x 1,783mm (W)
Safety: 5-Star Bharat NCAP Rating
Safety remains a cornerstone of the Kylaq’s value proposition. The SUV has achieved a 5-star Bharat NCAP safety rating, making it one of the safest vehicles in its segment. Standard safety features include:
- Six airbags across all variants
- Electronic Stability Control (ESC)
- Traction Control System
- Anti-lock Braking System (ABS) with Electronic Brake Distribution (EBD)
- Tyre Pressure Monitoring System (TPMS)
- Hill Hold Control
- ISOFIX child seat mounts
The comprehensive safety package includes over 25 active and passive safety features, positioning the Kylaq as a leader in its segment.
Feature-Rich Variants: Value Across the Range
Classic Variant (₹7.55 lakh)
The entry-level Classic variant offers essential features including LED headlights with DRLs, six airbags, rear parking sensors, power windows, manual air conditioning, and a 3.5-inch multi-information display.
Signature Variant (₹9.00 lakh – ₹10.00 lakh)
The Signature trim adds 16-inch alloy wheels, cruise control, a 7-inch touchscreen infotainment system with Android Auto and Apple CarPlay, TPMS, rear defogger, and dual-tone interior elements.
Signature+ Variant (₹10.34 lakh – ₹11.34 lakh)
This mid-range variant includes all Signature features plus additional comfort and convenience elements, making it the sweet spot for many buyers.
Prestige Variant (₹11.84 lakh – ₹12.80 lakh)
The flagship Prestige variant offers a 10.1-inch touchscreen, electric sunroof, ventilated and electrically adjustable front seats, 360-degree camera, premium upholstery, and advanced connectivity features.
Competitive Landscape: Kylaq vs. Rivals
The price reduction has significantly enhanced the Kylaq’s competitive position against established rivals:
| Model | Starting Price | Engine | Power | Safety Rating |
|---|---|---|---|---|
| Škoda Kylaq | ₹7.55 lakh | 999cc Turbo | 114 bhp | 5-star BNCAP |
| Tata Nexon | ₹7.32 lakh | 1199cc Turbo | 118 bhp | 5-star GNCAP |
| Hyundai Venue | ₹7.26 lakh | 1197cc | 82 bhp | Not tested |
| Maruti Brezza | ₹8.34 lakh | 1462cc | 103 bhp | 4-star GNCAP |
Prices are post-GST 2.0 implementation.
The Kylaq now offers superior fuel efficiency (19.68 kmpl vs. competitors’ 17-18 kmpl), turbo performance from the base variant, and European build quality at a highly competitive price point.
Market Performance: Kylaq’s Impact on Škoda’s Growth
The Kylaq has been instrumental in Škoda India’s remarkable transformation. The company achieved its highest-ever half-yearly sales of 36,194 units in H1 2025, jumping four positions to become the 7th largest automotive brand in India.
Key Performance Metrics:
- H1 2025 Sales: 36,194 units (highest ever)
- Market Position: 7th largest automotive brand (up from 11th in 2024)
- Kylaq Contribution: 65% of total sales in January-July 2025
- Network Expansion: From 120 touchpoints in 2021 to 295 in 2025
The Kylaq alone contributed 27,091 units in the first seven months of 2025, representing 65% of Škoda’s total sales volume. This performance helped the company more than double its sales compared to the same period in 2024.
Monthly Sales Performance
Recent sales figures demonstrate the Kylaq’s consistent market appeal:
| Month | Kylaq Sales | Total Škoda Sales | Market Share |
|---|---|---|---|
| August 2025 | 3,099 units | 4,971 units | 62.3% |
| June 2025 | 3,196 units | 7,965 units | 40.1% |
| March 2025 | Record month | 7,422 units | Peak performance |
Data compiled from various industry sources.
Technology and Connectivity Features
The Kylaq offers modern connectivity and infotainment options across variants:
Standard Features:
- Bluetooth connectivity with smartphone integration
- USB Type-C ports (front and rear in higher variants)
- Steering-mounted controls
- Multi-function steering wheel
Premium Features (Signature+ and Prestige):
- 10.1-inch touchscreen infotainment system
- Wireless Android Auto and Apple CarPlay
- Connected car technology
- Premium sound system with multiple speakers
Simply Clever Features
True to Škoda’s ‘Simply Clever’ philosophy, the Kylaq includes practical touches that enhance daily usability:
- Ticket holder on windscreen
- Dedicated phone pocket on seat back
- Door reflectors for safety
- Cooled glovebox
- Multiple storage compartments
Color Options and Personalization
The Kylaq is available in seven exterior color options, though availability varies by variant:
All Variants: Candy White, Brilliant Silver, Tornado Red
Signature and above: Deep Black, Lava Blue (₹9,000 extra)
Prestige only: Olive Gold, Carbon Steel
The Olive Gold and Lava Blue options carry a premium of ₹9,000 on select variants.
Ownership Experience and After-Sales
Škoda has strengthened its after-sales commitment with:
- 4-year/1,00,000 km comprehensive warranty
- Complimentary Škoda Supercare maintenance package for one year
- Expanding service network with target of 350 touchpoints by end-2025
- Digital service booking and enhanced customer experience initiatives
Fuel Efficiency and Real-World Performance
The Kylaq’s 1.0 TSI engine delivers impressive fuel efficiency figures:
- ARAI Certified: 19.68 kmpl (manual), 19.05 kmpl (automatic)
- Real-world testing: Approximately 12.86 kmpl (manual), 11.03 kmpl (automatic) in mixed conditions
- Performance: 0-100 kmph in 10.5 seconds (manual), 11.69 seconds (automatic)
- Top Speed: 188 kmph
Impact of GST 2.0 on the Broader Market
The GST 2.0 reforms have created a more favorable environment for small car buyers across India. The elimination of cess and reduction from 29% to 18% total tax has made entry-level vehicles significantly more accessible.
Market-Wide Benefits:
- Entry-level vehicles become more affordable
- Improved accessibility for first-time buyers
- Enhanced competitiveness of small cars against larger vehicles
- Potential boost to overall automotive sales
Other manufacturers, including Maruti Suzuki, Hyundai, and Tata Motors, have also announced revised pricing for their compact vehicles, creating a more competitive landscape.
Future Outlook: Škoda’s Strategic Position
The price reduction positions the Kylaq favorably for continued growth:
Upcoming Catalysts:
- Festive season demand (October-December 2025)
- Network expansion to 350+ touchpoints
- Enhanced availability across Tier-2 and Tier-3 cities
- Potential for additional variants or special editions
The Kylaq’s success has also paved the way for Škoda to consider additional sub-4-meter products for the Indian market, leveraging the favorable tax structure.
Financing and EMI Options
With the reduced prices, the Kylaq becomes more accessible through financing:
Estimated EMI Structure (based on new prices):
- Classic variant: Starting from approximately ₹12,000-14,000 per month
- Signature AT: Around ₹18,000-20,000 per month
- Prestige AT: Approximately ₹22,000-25,000 per month
EMI calculations may vary based on down payment, tenure, and interest rates offered by different financial institutions.
Conclusion: A New Era for European Quality in Indian Market
The GST 2.0 implementation has fundamentally transformed the value proposition of the Škoda Kylaq, making European engineering and safety standards accessible to a broader audience. With savings of up to ₹1.19 lakh, the Kylaq now offers:
- Best-in-class safety with 5-star Bharat NCAP rating
- Superior fuel efficiency with turbo performance
- Premium build quality and European design philosophy
- Comprehensive feature set across all variants
- Strong after-sales support with expanding network
The price reduction, combined with the Kylaq’s inherent strengths, positions it as one of the most compelling choices in India’s highly competitive compact SUV segment. For buyers seeking European quality, advanced safety features, and strong performance at an accessible price point, the post-GST 2.0 Kylaq represents exceptional value in the current market landscape.
As the festive season approaches and the automotive industry benefits from these tax reforms, the Škoda Kylaq stands ready to capture a larger share of India’s growing compact SUV market, potentially setting new benchmarks for sales performance in the months ahead.
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