How Much Does an Audi Cost After Union Budget 2025 Reduced Customs Duty on Imported Cars?

The Union Budget 2025 brought a wave of changes to the automotive sector—particularly in the luxury segment. One of the most impactful reforms is the reduction in customs duty on cars priced above $40,000 (approximately ₹35 lakh). This move directly affects premium carmakers like Audi, whose high-end models are now expected to become more affordable in India.

But what does this actually mean for your next Audi purchase? Let’s break it down.

What Is the Custom Duty on Imported Cars After Budget 2025?

Under the new budget, the customs duty on high-value imported cars has been reduced from 125% to 70%. Additionally, the 10% Social Welfare Surcharge (SWS) has been scrapped.

For Audi, this benefits models such as the Audi A8L, Q7, Q8, and e-tron GT. These price cuts make luxury vehicles more accessible, especially for buyers in metro cities who prefer top-end global variants over locally assembled models.

Introduction of Agriculture Infrastructure and Development Cess (AIDC)

However, to maintain fiscal balance, the government has introduced a 40% Agriculture Infrastructure and Development Cess (AIDC). This ensures the total effective duty still remains at around 110%, slightly easing the previous tax burden but not eliminating it.

While the AIDC replaces the Social Welfare Surcharge, the key difference is that the entire collection from this cess goes to the central government—a strategic shift from welfare to infrastructure development funding.

How Does This Impact Audi Compared to Other Luxury Brands?

Audi isn’t the only luxury brand to benefit—similar pricing advantages will be seen across BMW, Mercedes-Benz, Jaguar Land Rover, and Porsche. However, Audi’s current push toward EVs and performance models could give it a unique edge, especially as the Indian premium market matures.

Conclusion

The Union Budget 2025’s reduction in customs duty on imported luxury cars marks a welcome change for the Indian luxury car market. For Audi buyers, it means lower price tags on flagship imported models, even though the introduction of AIDC keeps overall duties moderately high.

Still, the move signals a more progressive and infrastructure-focused taxation regime, which could benefit both manufacturers and consumers in the long run.

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