Mercedes-Benz Cars Prices Slashed in India! After the GST 2.0 rollout, Mercedes-Benz has announced massive price cuts of up to ₹11 lakh across its luxury car lineup, including the S-Class, GLS, GLE, E-Class, C-Class, GLC, A-Class, and GLA. Effective from September 22, 2025, the new tax structure reduces the earlier 48% GST slab on luxury cars to 40%, directly benefiting customers.
Mercedes-Benz becomes the first luxury automaker in India to pass on these tax benefits to buyers, making premium sedans and SUVs significantly more affordable. Mercedes-Benz EVs, however, remain unchanged with a 5% GST. Explore the updated prices, model-wise reductions, and complete details on how GST 2.0 impacts the luxury automobile market. Learn why this move is expected to boost the premium car segment and influence rival brands like BMW, Audi, Jaguar Land Rover, and Volvo to follow the same path. Read FAQs for all your questions answered about GST 2.0 and new Mercedes-Benz pricing in India.
Introduction
Big news for luxury car enthusiasts in India! Mercedes-Benz Cars Prices Slashed by up to ₹11 lakh following the implementation of GST 2.0, which restructures tax slabs for premium automobiles. The German luxury carmaker has become the first automaker in India to pass on these direct tax benefits to customers, making its luxury sedans and SUVs more affordable than ever before.
The new GST reform reduces the earlier 48% tax slab to 40%, significantly lowering the final ex-showroom price of Mercedes-Benz models. These changes will officially take effect from September 22, 2025.
GST 2.0 and Its Impact on Luxury Cars
The Union Government recently introduced GST 2.0, restructuring indirect tax slabs across multiple sectors, including the automotive industry. Luxury cars were earlier taxed at 48% GST, which has now been reduced to 40% GST under the new regime.
This 8% reduction in the tax burden has led to substantial price cuts across the Mercedes-Benz portfolio in India. Importantly, Mercedes-Benz EVs will continue to be taxed at 5% GST, meaning no change in their pricing.
Mercedes-Benz, in its official statement, confirmed:
“In line with our commitment to our customers, we are pleased to share that Mercedes-Benz India will be passing on the entire benefit of the GST reduction directly to the end customers.”
This transparent move is expected to boost luxury car sales in India and compel other automakers like BMW, Jaguar Land Rover, Audi, and Volvo to follow suit.
Mercedes-Benz Cars Prices Slashed – Model-Wise Reduction
Here’s a complete breakdown of how Mercedes-Benz Cars Prices Slashed under GST 2.0 from September 22, 2025:
1. Mercedes-Benz S 450 4Matic
- Old Price: ₹1.99 Crore
- New Price: ₹1.88 Crore
- Price Cut: ₹11 Lakh (Maximum reduction)
2. Mercedes-Benz GLS 450d AMG Line (Flagship SUV)
- Old Price: ₹1.44 Crore
- New Price: ₹1.34 Crore
- Price Cut: ₹10 Lakh
3. Mercedes-Benz GLE 450 4Matic
- Old Price: ₹1.15 Crore
- New Price: ₹1.07 Crore
- Price Cut: ₹8 Lakh
4. Mercedes-Benz E-Class (LWB 450 4Matic)
- Old Price: ₹97 Lakh
- New Price: ₹91 Lakh
- Price Cut: ₹6 Lakh
5. Mercedes-Benz C-Class 300 AMG Line
- Old Price: ₹68 Lakh
- New Price: ₹64.30 Lakh
- Price Cut: ₹3.70 Lakh
6. Mercedes-Benz GLC 300 4Matic (SUV)
- Old Price: ₹79.25 Lakh
- New Price: ₹73.95 Lakh
- Price Cut: ₹5.30 Lakh
7. Mercedes-Benz A-Class Sedan (A200d)
- Old Price: ₹48.55 Lakh
- New Price: ₹45.95 Lakh
- Price Cut: ₹2.60 Lakh
8. Mercedes-Benz GLA 220d 4Matic AMG Line
- Old Price: ₹56.50 Lakh
- New Price: ₹52.70 Lakh
- Price Cut: ₹3.80 Lakh
Why This Matters for Luxury Car Buyers
The Mercedes-Benz Cars Prices Slashed announcement comes as a major win for luxury car buyers in India. Here’s why:
- Direct Customer Benefit – Unlike earlier, Mercedes-Benz is not retaining any share of the GST reduction but passing the entire benefit to buyers.
- Boost in Luxury Segment – The price slash could drive up sales in premium car segments.
- Wider Accessibility – While Mercedes-Benz vehicles remain aspirational, the reduced pricing makes entry-level sedans like the A200d and GLA more affordable for first-time luxury buyers.
- Competitive Market Pressure – This move is expected to put BMW, Audi, Jaguar Land Rover, and Volvo under pressure to announce similar cuts to remain competitive.
- Growth in SUV Sales – With SUVs like GLS, GLE, and GLC witnessing heavy price cuts, their popularity in India could surge further.
Also Read : HSRP Number Plate – Important benefits and great information to avoid fines
Industry Reactions & Future Expectations
The luxury automobile market in India is set for a transformative phase post-GST 2.0. Market experts believe:
- BMW and Audi may announce similar price cuts soon.
- Customer demand for premium cars will rise sharply during the upcoming festive season.
- EVs will maintain steady pricing under 5% GST, but their adoption may still grow with better infrastructure.
Mercedes-Benz India has smartly positioned itself as the first mover, giving it an edge in the luxury car space.
FAQs – Mercedes-Benz Cars Prices Slashed in India
Q1. Why did Mercedes-Benz slash car prices in India?
Ans: Mercedes-Benz reduced prices after the rollout of GST 2.0, which lowered the tax slab for luxury cars from 48% to 40%.
Q2. From when will the new Mercedes-Benz prices be effective?
Ans: The new prices will be effective from September 22, 2025, across India.
Q3. Which Mercedes-Benz model received the highest price cut?
Ans: The Mercedes-Benz S 450 4Matic received the biggest cut of ₹11 lakh.
Q4. Are Mercedes-Benz EVs also cheaper now?
Ans: No. EVs will continue under 5% GST and their prices remain unchanged.
Also Read : Mahindra Price Drops – Up to ₹1.56 Lakh Savings After GST Tax Relaxation
Q5. Which SUV models got major reductions?
Ans: The GLS 450d AMG Line (₹10 lakh cut) and GLE 450 4Matic (₹8 lakh cut) saw the biggest price drops among SUVs.
Q6. Will other brands also reduce car prices after GST 2.0?
Ans: Yes, market experts expect BMW, Audi, Jaguar Land Rover, and Volvo to follow Mercedes-Benz’s lead.
Q7. Are these price cuts applicable pan-India?
Ans: Yes, the reduced ex-showroom prices apply across all states in India.
The rollout of GST 2.0 has brought welcome news for luxury car buyers in India. With Mercedes-Benz Cars Prices Slashed by up to ₹11 lakh, the brand has set a benchmark in customer-centric transparency. This bold move not only enhances affordability but also reshapes the competitive landscape of India’s luxury automobile market.
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