Mercedes-Benz Cars Get Cheaper with GST Cut: Price Drop Up to Rs 11 Lakhs

Mercedes-Benz Cuts Prices By Up to Rs 11 Lakhs

In a massive win for luxury car buyers, Mercedes-Benz India has announced a major price reduction across its entire lineup of cars and SUVs. This move is a direct result of the new GST 2.0 framework, which simplifies taxes on luxury vehicles. With a single 40% GST slab now in effect, down from the previous 50% tax, luxury cars are now much more affordable.

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Huge Savings on Top Models

Mercedes-Benz has confirmed that it will pass on the complete tax benefit to its customers, with the new prices starting on September 22, 2025. The price cuts are huge, ranging from Rs 2.6 lakh to over Rs 11 lakh.

Here is a look at the estimated savings on popular models:

A Timely Boost for the Market

This announcement comes just before the festive season, which is a key time for car sales in India. By making its cars more accessible, Mercedes-Benz aims to attract a new wave of buyers, not just in large cities but also in smaller, emerging markets. The brand expects a significant increase in bookings and deliveries, further strengthening its leadership in the luxury car segment.

How the New GST 2.0 Works

For premium and luxury cars, the new GST reform simplifies the tax structure. Earlier, these cars were taxed at 28% GST plus an additional cess that could go up to 22%. The new system removes the cess and applies a flat 40% GST. This is a major change that is expected to help the entire automotive industry by making high-end cars more affordable for more people.