Mercedes-Benz cars are now cheaper in India
What's the story
Mercedes-Benz India has announced a major price cut across its entire range of cars and SUVs. The move comes after the Indian government introduced the new GST 2.0 framework, effective from September 22. The reform simplifies the tax structure by placing premium passenger vehicles in a single 40% GST slab, instead of the previous system of 28% GST plus an additional cess of up to 22%.
Impact
Price cuts go up to ₹11L
The new GST rates have led to price reductions of up to ₹11 lakh on select models. For instance, the entry-level sedan A200d now starts at ₹45.95 lakh, down by ₹2.6 lakh from its earlier price of ₹48.55 lakh. Similarly, the flagship sedan S 450 4MATIC is now available at ₹1.88 crore, reduced by a whopping ₹11 lakh from its previous price tag of ₹1.99 crore (all prices, ex-showroom).
Commitment
Mercedes-Benz committed to passing benefits to customers
Mercedes-Benz has confirmed its commitment to pass on the full benefit of the tax reduction to customers. This means buyers will directly feel the impact of this reform, making luxury cars more affordable. The move comes just ahead of the festive season, when demand for luxury cars usually goes up, making these price cuts especially timely and relevant.
Tax relief
Luxury cars in India are heavily taxed
Luxury vehicles in India have been heavily taxed, with effective rates almost doubling the ex-factory cost. The GST 2.0 reform addresses this concern, by streamlining the tax structure and removing the cess component that disproportionately impacted premium vehicles. By reducing taxes, the Centre hopes to improve affordability, stimulate demand, and also create a positive ripple effect across the automotive value chain.