Even before the new rates of the federal Goods and Services Tax (GST) on commodities and services came into effect, German luxury carmakers like Mercedes-Benz and BMW have already settled on passing on the benefit of the new federal tax regime to its customers in India, keen to make an early impression on the purchase decisions of auto buyers.
Mercedes-Benz India announced a price revision of its entire range of made-in-India portfolio, which includes nine models like CLA, GLA, C-Class, E-Class, S-Class, GLC, GLE, GLS and Mercedes-Maybach. The prices of the aforementioned models of Mercedes range between Rs. 32 lakh and Rs. 1.87 crore (ex-showroom Delhi). With the benefit of new tax rate under GST, the prices will see a drop by up to Rs. 7 lakh. While the latest price revision will be effective from May 26, throughout June, Mercedes-Benz can revert the prices to the old one if there is a delay in the implementation of the GST. The new tax regime is now proposed to come in effect from July 1, 2017.
“The price revision on a weighted average of 4% will be effective immediately, and is aimed at providing value to a customer’s purchase decision before GST implementation,” the company said in a statement.