Mercedes and BMW Car Price: Mercedes-Benz India has handed customers welcome news. The company says the full benefit of the GST rate cut will pass directly to buyers.Luxury car prices are set to drop.
The GST Council’s tax overhaul brings major relief for ordinary consumers. Instead of four slabs, there will now be just two at 5% and 18%. The government’s decision is already rippling through the luxury market. Mercedes-Benz India and BMW Group India have both announced they will pass on the entire tax relief to their customers. Prices of select Mercedes-Benz SUVs and sedans will fall sharply. On some models, the sticker could shrink by roughly ₹11 lakh. BMW models will also see reductions, with buyer savings of about ₹9 lakh in certain trims.
For luxury car shoppers, the impact is significant. Analysts say the streamlined tax structure may not only benefit buyers but could also spur higher sales across the luxury segment.
Big relief on Mercedes-Benz prices
Mercedes-Benz India has confirmed the good tidings for prospective owners. The company will transfer the full benefit of the GST cut directly to purchasers. That means luxury car prices will now be lower than before. According to the brand, revised pricing at a uniform 40% for all non-EV Mercedes-Benz models will apply from 22 September 2025, subject to the government notification being issued. EVs will continue to attract just 5% GST. This recalibration could save customers lakhs of rupees and make stepping into a luxury car markedly easier.
SUV price changes
| SUV | Price after GST 2.0 | Earlier price | Difference |
|---|---|---|---|
| GLA 220d 4MATIC AMG | ₹52.70 lakh | ₹56.50 lakh | ₹3.80 lakh |
| GLC 300 4MATIC | ₹73.95 lakh | ₹79.25 lakh | ₹5.30 lakh |
| GLE 450 4MATIC | ₹1.07 crore | ₹1.15 crore | ₹8 lakh |
| GLS 450d AMG Line | ₹1.34 crore | ₹1.44 crore | ₹10 lakh |
How much cheaper do sedans get
Mercedes-Benz has also pared prices on its luxury sedans, giving customers a chance to buy these premium models for less. Under the new tags, the A200d becomes cheaper by about ₹2.6 lakh. The C300 AMG Line drops by roughly ₹3.7 lakh. The E-Class LWB 450 4MATIC is now around ₹6 lakh lower. The biggest cut lands on the S 450 4MATIC, down by nearly ₹11 lakh. The company believes this move will make its luxury sedans noticeably more attainable.
Customers stand to gain
BMW has trimmed prices across its luxury range as well, delivering direct savings to SUV and sedan buyers. In the SUV lineup, the entry-level X1 is now cheaper by roughly ₹1.8 lakh. The X5 falls by about ₹6.3 lakh, while the flagship X7 sees a reduction of close to ₹9 lakh. Sedan shoppers also benefit. The 2 Series Gran Coupé drops by around ₹1.6 lakh, the 3 Series LWB by nearly ₹3.4 lakh, and the 5 Series LWB by about ₹4.1 lakh. Note that these revised prices from both Mercedes-Benz and BMW apply to ex-showroom rates.
Biggest winners in the SUV lineup
The SUV savings start with the X1, lower by roughly ₹1.8 lakh. Next up, the X5 slips by about ₹6.3 lakh, and the flagship X7 tumbles by nearly ₹9 lakh. Sedan buyers do well too. The 2 Series Gran Coupé is down around ₹1.6 lakh, the 3 Series LWB by about ₹3.4 lakh, and the 5 Series LWB by close to ₹4.1 lakh. Remember, all reduced figures for both Mercedes-Benz and BMW models apply to ex-showroom pricing.
What changed in the tax architecture
The tax framework for luxury cars has undergone a sweeping reset. Previously, luxury ICE (petrol-diesel) cars attracted an overall 48% to 50% levy. That included 28% GST plus a compensation cess of 20% to 22%, depending on engine size and body type. The government has now simplified GST by moving all luxury ICE cars into a single 40% slab. Crucially, there will be no compensation cess on these vehicles. EVs, meanwhile, continue with a 5% GST rate as before.
The new GST rates take effect from 22 September. Multiple automakers have already clarified that they will pass the entire tax reduction to customers. That includes mass-market manufacturers and luxury marques alike.
