Mercedes-Benz Slashes Prices in India After GST Cut: Luxury Cars Now More Affordable

Mercedes-Benz India has rolled out a major price cut across its petrol and diesel car lineup. With the new GST rules in place, buyers will now find several models priced much lower than before. The revised tax slab has resulted in direct savings, with reductions ranging from Rs 1.6 lakh on entry-level sedans to over Rs 25 lakh on top-end AMG performance SUVs.

The company has confirmed that this reduction is due to the GST Council’s decision to apply a flat 40% tax rate on luxury cars. Earlier, these cars attracted 45–50% taxes, depending on the category and engine size. The new tax rate has brought down ex-showroom prices considerably, making premium cars more appealing to Indian customers.

How Much Have Prices Dropped?

Luxury cars in India were previously subject to multiple taxes—GST plus compensation cess, which pushed the effective tax close to 50% on SUVs and performance models. With the new 40% flat GST, all petrol and diesel Mercedes-Benz models are cheaper now.

Here’s How Much You Can Save On Sedan

Mercedes-Benz A-Class Limousine

Mercedes-Benz C-Class

Mercedes-Benz E-Class

Mercedes-Benz S-Class

Mercedes-Benz CLE Cabriolet

Here’s How Much You Can Save On SUV

Mercedes-Benz GLA

Mercedes-Benz GLC

Mercedes-Benz GLE

Mercedes-Benz GLS

Maybach Price Reduction

AMG Price Reduction

EV Pricing Remains Unchanged

Electric vehicles from Mercedes-Benz continue to attract just 5% GST, so their prices remain the same. Current models include the EQS, EQB, EQE SUV, and the new electric G-Class (G580). Prices for these start from Rs 67.2 lakh for the EQA 250+ and go up to Rs 3.10 crore for the G580.

Why This Change Matters

The GST reduction has created a direct impact on the automobile industry in India. By making luxury vehicles more affordable, it is expected to:

• Increase sales during the upcoming festive season.

• Improve dealership footfall and help clear inventory.

• Encourage buyers who were waiting for discounts to finally book their cars.

• Strengthen the premium car segment, which contributes significantly to the overall automobile market.

For customers, this is the best time to buy luxury cars as they can enjoy GST-linked savings along with festive offers and finance schemes.

The GST rate cut has changed the luxury car market in India in a big way. With Mercedes-Benz India reducing prices by up to Rs 25 lakh, customers have a rare chance to buy high-end sedans, SUVs, AMGs, and Maybachs at more accessible prices. While electric vehicles remain unchanged, the overall petrol and diesel portfolio has become far more attractive.

For many buyers, this could be the perfect opportunity to upgrade to a luxury vehicle, as the savings are not just in lakhs but in some cases, tens of lakhs. The automobile industry expects demand to rise sharply in the coming months, proving how impactful this tax reform has been.