Mercedes GST Cut Impact: Cars Cheaper By Up To Rs 25 LAKH!

The luxury car market in India is undergoing a revolutionary change with the latest GST 2.0 reforms, and Mercedes-Benz India is at the forefront. As of September 9, 2025, at 03:43 PM IST, the company has announced a breaking news update, slashing prices across its petrol and diesel models following a significant GST rate reduction. Effective from a designated date, this latest development offers savings of up to Rs. 25 lakh, making luxury vehicles more accessible ahead of the festive season.

Overview of GST 2.0 and Price Reduction Strategy

The Indian government’s GST 2.0 reform has simplified the taxation structure for vehicles, reducing the GST rate on luxury cars from a range of 45-50 percent, including cess, to a flat 40 percent. Mercedes-Benz India has promptly responded by passing the full benefit of this tax cut to customers, resulting in substantial ex-showroom price reductions. This strategic move aligns with the company’s commitment to enhance affordability, especially as the festive season approaches, a peak period for luxury car sales.

Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, noted that this reform is a significant step toward making luxury more attainable. The price cuts span sedans, SUVs, convertibles, and high-performance AMG models, with the most dramatic reductions seen on top-tier vehicles like the Maybach SL 680 Monogram and AMG G Wagen. This update marks a pivotal moment in the luxury automotive sector, reflecting the latest market trends.

Mercedes-Benz Sedans: New Pricing Post-GST Cut

Mercedes-Benz sedans, previously taxed at 45-48 percent including cess, now benefit from the uniform 40 percent GST rate, leading to significant savings. The entry-level A-Class Limousine sees reductions of Rs. 1.6 lakh for the petrol variant and Rs. 2.6 lakh for the diesel, setting a new benchmark for affordability in the luxury segment.

The C-Class offers even greater savings, with the top-spec C 300 AMG Line seeing a reduction of Rs. 3.7 lakh, the highest among its variants.

The E-Class, a best-seller in India, now offers savings ranging from Rs. 4.5 lakh to Rs. 5.25 lakh, with the added attraction of a new ‘Verde Silver’ color for the E 450 4MATIC AMG Line.

The S-Class, synonymous with ultimate luxury, sees savings of over Rs. 10 lakh, appealing to high-end buyers.

The CLE cabriolet, the sole non-AMG convertible, offers a notable Rs. 6.3 lakh reduction.

Mercedes-Benz SUVs: Significant Price Drops

Mercedes-Benz SUVs, previously taxed at up to 50 percent including cess, now align with the 40 percent GST rate, resulting in substantial price cuts. The entry-level GLA starts below Rs. 50 lakh, with savings up to Rs. 3.6 lakh depending on the variant.

The mid-size GLC, available in petrol and diesel variants, sees a uniform Rs. 5.3 lakh reduction.

The GLE offers savings of up to Rs. 8 lakh, with prices now starting below Rs. 1 crore.

The GLS, a full-size SUV, is now cheaper by nearly Rs. 10 lakh.

Mercedes-Maybach and AMG Models: Unprecedented Savings

For those seeking unparalleled luxury, the Mercedes-Maybach range offers impressive reductions, with the Maybach SL 680 Monogram seeing a Rs. 23.5 lakh cut, though the AMG G Wagen leads with a staggering Rs. 25.65 lakh reduction.

The AMG lineup, catering to performance enthusiasts, sees the largest drops, with the AMG G 63 offering a Rs. 25.65 lakh reduction.

Mercedes-Benz EV Models: No Price Change

Mercedes-Benz electric vehicles (EVs) remain unaffected by the GST 2.0 reforms, retaining a 5 percent tax rate to promote sustainable mobility. Below is the current price list for the EV lineup.