India’s Goods and Services Tax (GST) will be effective from July 1, where the luxury vehicles will attract a total of 43% tax (28% tax + 15% cess), a lesser number compared to the current taxes which is over 50%. Mercedes-Benz India became the first carmaker to pass on the GST benefits to the customer.
The company in an official statement said that the price reduction of the entire ‘Made in India’ portfolio ranges from 2% to 9% depending on the tax structure and local body taxes of the state. The weighted average of this is a price reduction of 4% on transaction prices of customers.
Roland Folger, MD & CEO, Mercedes-Benz India commented, “As a customer centric initiative, we are now passing on the benefits of post-GST pricing of our ‘Made in India’ cars with immediate effect. To ensure complete peace of mind for our customers, we have decided to pass on the GST tax benefits at an earlier stage at our cost. This approach will benefit the customers who want to purchase a locally produced Mercedes-Benz from now on and during the month of June. The impact on the prices on CBU vehicles is yet to be evaluated. We think the implementation of the GST structure is a landmark achievement for the Indian economy, which will support the ease of doing business in India. We are also confident that post GST implementation; there will be growth momentum in the luxury car industry.”
The ‘Made in India’ cars includes models such as C-Class, GLA, GLC, E-Class, GLE and even the S-Class.
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