GST Reform Slashes Prices of Mercedes, BMW, and Audi Cars by Up to Rs 11 Lakh
Luxury car buyers in India are set to benefit from significant price reductions starting September 22, thanks to a recent GST overhaul. Under the new tax structure, luxury vehicles from manufacturers like Mercedes-Benz, BMW, Audi, and Mini will see their effective prices reduced by up to ₹11 lakh on the ex-showroom price.
The new GST policy simplifies the tax framework for large vehicles (over 4 meters in length and/or with larger engines), replacing the previous 28% GST plus an additional cess of up to 22% with a flat 40% GST rate. This change is expected to lower the total tax incidence, which previously ranged from 45% to 50%. It’s important to note that this reform does not affect the prices of electric vehicles, as their GST rates remain unchanged.
Here’s a breakdown of the announced price reductions by brand:
Audi
Audi has confirmed price reductions for six of its ICE-powered models in India. The Audi Q3 will see a price drop of up to ₹3.07 lakh, while the biggest savings are on the flagship Q8, with a reduction of up to ₹7.83 lakh.
BMW has announced price benefits for six of its 16 ICE models. The savings range from ₹1.60 lakh on the 2 Series Gran Coupe to a substantial ₹8.90 lakh on the X7.
Mercedes-Benz, with the largest portfolio of ICE models in the Indian market, has announced price drops for specific variants of six models. The most significant reduction is on the S-Class S 450, with a massive ₹11 lakh price drop. Prices for the E-Class are also confirmed to decrease by up to ₹5.2 lakh.
Mini, which sells a single ICE model in India, the Cooper S, will see a straightforward price reduction. The price of the Cooper S will drop by up to ₹3 lakh, depending on the variant.
*All prices are ex-showroom, India.
Also read : Mercedes-Benz E-Class prices drop by ₹5 lakh+ as Mercedes passes on GST benefits
