The GST Council has given great relief to the common man by improving tax. Now there will be only two GST slabs of five and 18 percent instead of four slabs. The direct impact of this decision of the government is now visible on luxury cars. Mercedes-Benz India and BMW Group India have announced that they will give full benefit of this tax relief to their customers. The prices of Mercedes-Benz selected SUVs and sedan models will now be much lower than before. The company said that the price of some vehicles will decrease by up to Rs 11 lakh. At the same time, BMW cars will also have an impact and customers will get an advantage of up to Rs 9 lakh. This decision will provide great relief to the luxury car buyers. Experts believe that improvement in tax structure will not only benefit customers, but will also increase the sales of luxury cars.
Big relief in the prices of Mercedes-Benz cars
Mercedes-Benz India has given good news for customers. The company has said that buyers will get the full advantage of GST rate cuts directly. This means that now the prices of luxury cars will be lower than before. According to the company, from September 22, 2025, a replacement price of 40% will be applicable to all Mercedes-Benz models except electric vehicles (EV), which is subject to government notification. At the same time, EV will be charged only 5% GST as before. This change can benefit customers up to millions of rupees and it will be easier to buy a luxury car than before.
Mercedes-Benz has also reduced its luxury sedan cars prices. The company says that now customers will get a chance to buy these premium models at a lower price. According to the new prices, the A200D will get a discount of around Rs 2.6 lakh. At the same time, the price of C300 AMG line has been reduced by about Rs 3.7 lakh. Apart from this, E-Class LWB 450 4Matic has now become about 6 lakh rupees cheaper. The biggest cut S450 is in 4Matic, which has been priced at around Rs 11 lakh. The company believes that this step will make buying a luxury sedan even cheaper and easier.
Customers will benefit
BMW has also cut the prices of its luxury cars, which will directly benefit the customers who buy the SUV and the sedan. In the SUV segment, Entry-Level X1 has now become about Rs 1.8 lakh cheaper. At the same time, the price of X5 has been reduced by about 6.3 lakh rupees and the price of flagship model X7 has been reduced by about 9 lakh rupees. Those who buy luxury sedans will also get great relief. The price of 2 series gran coupe has been cut by about Rs 1.6 lakh, 3 series LWB price of about Rs 3.4 lakh and 5 series LWB price has been cut by about Rs 4.1 lakh. Significantly, these new prices of cars from both Mercedes-Benz and BMW brands will apply ex-showroom.
They are the most benefited in SUV lineup
X1 has the most benefit in SUV lineup, which has reduced the price of about Rs 1.8 lakh. After this, the price of X5 has been cut by about 6.3 lakh rupees and the price of flagship X7 has been cut by about 9 lakh rupees. Buyers will also get good returns in the sedan segment. Now 2 series gran coupes have become about 1.6 lakh rupees, 3 series LWB about 3.4 lakh rupees and 5 series LWB is about 4.1 lakh rupees. The thing to keep in mind is that ex-showroom prices will apply to all the cars of Mercedes-Benz and BMW brand which have been cut.
There has been a major change in the tax structure on luxury cars. Previously, luxury ICE (petrol-diesel) cars were taxed from a total of 48% to 50%. It also included compensation cess of 20% to 22% based on engine size and body type with 28% GST. Now the government has simplified GST and put all luxury ICE cars in a tax slab of 40%. The special thing is that now there will be no compensation cess on them. At the same time, only 5% GST will be applicable on electric vehicles as before.
