Mercedes-Benz India Slashes Prices by Up to ₹11 Lakh Following GST Reduction
Mercedes-Benz India has announced significant price cuts across its vehicle lineup in response to a reduction in GST rates. Price reductions range from ₹3 lakh to ₹11 lakh, with the S 450 4MATIC now priced at ₹1.88 crore (₹11 lakh reduction), GLS 450d AMG Line at ₹1.34 crore (₹10 lakh reduction), and GLE 450 4MATIC at ₹1.07 crore (₹8 lakh reduction). The revised GST rate for non-EV Mercedes-Benz cars is now 40%, while EVs remain at 5%. The new prices, effective September 22nd, are based on ex-showroom PAN India pricing.
*this image is generated using AI for illustrative purposes only.
Mercedes-Benz India has announced significant price cuts across its vehicle lineup in response to a recent reduction in Goods and Services Tax (GST) rates. The luxury automaker is passing on the entire benefit of the tax reduction directly to its customers, with price reductions ranging from ₹3 lakh to ₹11 lakh across different models.
New GST Rates and Price Adjustments
The revised GST rate for all Mercedes-Benz cars, excluding electric vehicles (EVs), has been set at 40%. EVs continue to attract a lower GST rate of 5%. This tax adjustment has led to substantial price reductions across the Mercedes-Benz range, making their luxury vehicles more accessible to Indian consumers.
Significant Price Reductions
Some of the most notable price cuts include:
| Model | Price Reduction | New Price |
|---|---|---|
| S 450 4MATIC | ₹11 lakh | ₹1.88 crore |
| GLS 450d AMG Line | ₹10 lakh | ₹1.34 crore |
| GLE 450 4MATIC | ₹8 lakh | ₹1.07 crore |
Implementation and Pricing Details
The revised prices came into effect on September 22nd and are based on ex-showroom PAN India pricing. This move by Mercedes-Benz India demonstrates the company's commitment to passing on tax benefits to its customers, potentially stimulating demand in the luxury car segment.
Impact on the Luxury Car Market
This significant price reduction across Mercedes-Benz's lineup could have far-reaching effects on the luxury car market in India. It may lead to increased competition among premium automakers and potentially boost sales in the high-end vehicle segment.
The price cuts make Mercedes-Benz vehicles more attractive to prospective buyers who may have been hesitant due to high luxury car prices. This move could also encourage other luxury car manufacturers to reassess their pricing strategies in the Indian market.
As the automotive industry continues to evolve with changing tax structures and consumer preferences, Mercedes-Benz's proactive approach in adjusting prices showcases the company's adaptability and customer-centric focus in the competitive Indian luxury car market.
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