Leader of the luxury car space, Mercedes-Benz India has reduced prices by up to Rs 7.5 lakh of its locally assembled cars and SUV's with immediate effect, passing on the GST benefits to the consumers.
Mercedes-Benz has reduced price in the range of Rs 1.5-Rs 7.5 lakh, across India. Its nine 'Made in India' models like CLA, GLA, C-Class, E-Class, S-Class, GLC, GLE, GLS and Mercedes-Maybach S 500 gets the price benefit from the new GST regime and get more affordable.
It announced a downward revision in its transaction prices to cover the difference in current ex-showroom prices and post GST ex-showroom prices for customers on the entire range of 'Made in India' range. The new price will be effective immediately, and are aimed at providing value to a customer's purchase decision before GST implementation, the company said in a statement.
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Speaking on the announcement, Roland Folger, Managing Director & 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. "
The luxury car market is likely to be the biggest beneficiary of the GST rollout with major decrease in prices. The price cut is expected in the tune of Rs 1.25-10 lakh depending on the models and segments. The higher the price, the bigger will be the downward revision.
Other companies like Audi, BMW and Jaguar and Land Rover are also expected to make similar moves, giving growth momentum to the luxury car industry.
Mercedes-Benz has said that the price reduction of the entire 'Made in India' portfolio ranges from 2- 9 per cent depending on the tax structure and local body taxes of the state. The weighted average of this is a price reduction of 4 per cent on transaction prices paid by the customers.