Have you been wanting to buy luxury car? Well this could be the best time to buy these cars in India. The luxury carmaker Mercedes-Benz India Pvt Ltd just announced that they will reduce the price of all locally manufactured cars will get cheaper in alliance with the lowered GST! Hullaballoooo..
The classy German auto-giant known for its luxury swanky vehicles just announced that its Indian unit known as Mercedes-Benz India assembled 9 models including the elegant CLA sedan, the robust SUVs: GLA, GLE and GLS, the luxury posh sedan: C-Class, E-Class, S-Class and even the Maybach S500 are about to get significantly cheaper. Starting from Rs 32 lakh and ranging till Rs 2 Crore, their prices will be reduced by a weighted average of 4% because of the lowered GST rates! This is amazing because this means that the CLA will get Rs 1.4 lakh cheaper and the Maybach S500 will get Rs 7 lakh cheaper!! (Still not enough exclamatory marks!!!)
Mercedes is passing on the benefits of reduced GST to the customers and as per Roland Folger, the MD and CEO of Mercedes-Benz India, this step will ‘ensure peace of mind’ of their customers. At present, every luxury car manufacturer pays the duty of up to 55% of factory gate price which will be reduced to 43% after the revised GST. Merc was the first to announce the GST-impacts in Indian market and many are following its footsteps.
The arch-rival German giant BMW, which is the second biggest luxury car maker, followed suit announcing an immediate reduction in its prices. The company, however, refrained from detailing the actual reduction in prices. BMW makes the 5 series, 7 series, X5 to name a few at its Chennai-based plant. The price changes in BMW will be applicable even before the rollout of GST which includes reduced rate of interest at 7.9%, complimentary 3 years’ service and maintenance, complimentary one-year insurance and assured buyback for up to four years in addition to GST benefits. This pre-GST offer is valid for a limited period only.
The luxury ride treat doesn’t end here. Other brands like BMW, Tata Motors-controlled Jaguar Land Rover and Volkswagen-owned Audi may also follow suit with a similar reduction. Land Rover’s very Sport, which earlier cost Rs 47.88 lakh (ex-Delhi) is now down to Rs 43.80 lakh. The Range Rover Evoque is down from Rs 49.10 lakh to Rs 45.85 lakh and the Jaguar XE from Rs 39.90 lakh to Rs 37.25 lakh.
All these luxury brands are all happy about the GST, but there are always the gloomy ones who are unhappy. Like Toyota unhappy about the rise in tax on hybrids given that the Lexus range for India are mostly hybrids but its muscular SUV – Fortuner will lead to 5-6% price reduction when the tax structure is officially rolled out. So basically, now is the time to get a car, a premium one.