Luxury Car Buyers To Enjoy Festive Savings As Models From Mercedes, BMW, JLR, Audi, And Volvo Get Cheaper By Up To Rs 30 lakh

The festive season is bringing welcome news for luxury car buyers in India, as leading brands including Mercedes-Benz India, BMW Group India, Jaguar Land Rover (JLR) India, Audi India, and Volvo Car India have reduced prices following the Goods and Services Tax (GST) rationalization. Under the new tax regime, luxury vehicles now fall under the 40% GST slab. Previously, they faced a 28% GST along with a compensation cess of 20–22%, resulting in a total tax burden of 48–50%. While the GST on electric vehicles (EVs) remains at 5%, the compensation cess has been removed across all vehicles in the GST 2.0 framework.

Mercedes-Benz Passes on Savings of Up to Rs 11 Lakh

Mercedes-Benz India announced that its revised GST for all internal combustion engine (ICE) cars will be 40% effective September 22, leading to price reductions of up to Rs 11 lakh. Among SUVs, the GLA 220d 4MATIC AMG Line drops by Rs 3.8 lakh, the GLC 300 4MATIC by Rs 5.3 lakh, the GLE 450 4MATIC by Rs 8 lakh, and the GLS 450d AMG Line by Rs 10 lakh. For sedans, the A200d will be cheaper by Rs 2.6 lakh, the C300 AMG Line by Rs 3.7 lakh, the E-Class LWB 450 4MATIC by Rs 6 lakh, and the S 450 4MATIC by Rs 11 lakh.

A Mercedes-Benz spokesperson said, “In line with our commitment to our customers, we are passing on the entire benefit of the GST reduction directly to end customers. The revised pricing makes our cars and SUVs more accessible while aligning with government taxation reforms.”

BMW India offers up to Rs 9 lakh Price Cut

BMW Group India has also revised prices across its portfolio. Luxury SUVs see reductions of Rs 1.8 lakh on the X1, Rs 6.3 lakh on the X5, and Rs 9 lakh on the X7. Sedans follow with Rs 1.6 lakh off the 2 Series Gran Coupe, Rs 3.4 lakh off the 3 Series LWB, and Rs 4.1 lakh off the 5 Series LWB. The MINI Cooper line-up will be cheaper by Rs 2.5–3 lakh.

JLR reduces prices by Up to Rs 30.4 lakh

JLR India has passed on GST benefits ranging from Rs 4.5 lakh to Rs 30.4 lakh. The Discovery SUV is now Rs 4.5–9.9 lakh cheaper, the Defender Rs 7–18.6 lakh cheaper, and the Range Rover line-up sees reductions of Rs 4.6–30.4 lakh. 

JLR India Managing Director Rajan Amba stated, “The GST rationalization on luxury vehicles is a welcome move for customers and the industry. It provides much-needed impetus and reinforces our commitment to India’s luxury market.”

Also Read: From Aspiration to Reality: Mercedes, BMW, JLR, Audi Prices Likely to Fall After GST Cut | Republic World

Audi India brings festive price benefits

Audi India has revised prices with benefits ranging from Rs 2.6 lakh to Rs 7.83 lakh. SUV price drops include Rs 3.07 lakh on the Q3, Rs 4.55 lakh on the Q5, Rs 6.15 lakh on the Q7, and Rs 7.83 lakh on the Q8. Sedans A4 and A6 are cheaper by Rs 2.64 lakh and Rs 3.64 lakh, respectively.

Volvo offers up to Rs 6.9 Lakh price cuts

Volvo Car India has announced ICE vehicle price cuts up to Rs 6.9 lakh, effective September 22. The XC60 will cost Rs 4.79 lakh less, while the XC90 sees a reduction of Rs 6.93 lakh. Volvo Managing Director Jyoti Malhotra said, “We aim to make luxury mobility more accessible, and these offers will support growth in the niche luxury segment during the festive season.”

Luxury Car Market 

The Indian luxury car market reached a milestone in FY25, selling around 51,500 units—crossing 50,000 units for the first time. Mercedes-Benz led with 18,928 units, followed by BMW with 15,266, and JLR with 6,183 units. The recent GST rationalisation is expected to further boost demand, making high-end vehicles more affordable for buyers during the festive season, as per industry observers.