New Delhi: Good news for luxury car buyers. With the latest GST reforms, you can now save up to Rs 11 lakh on cars from brands like Mercedes-Benz, BMW and Audi. The government has simplified the tax structure for vehicles. Now, cars over 4 meters in length and/or with petrol engines above 1,200cc and diesel engines above 1,500cc will have a flat GST rate of 40%. Earlier, these cars were taxed with a 28% GST plus up to 22% additional cess, making the effective tax around 45-50%. These new GST rates will be effective from September 22, 2025.
Audi Cars Price Drop Post GST Reform
Audi sells 9 petrol and diesel cars in India. The company has announced price reductions for six of them, including the A4, A6, Q3, Q5, Q7, and Q8. The other three models – S5, Q3 Sportback, and RSQ8 – are not yet confirmed for price cuts.
Model-wise Price Reductions
A4- Up to Rs 3.15 Lakh
A6- Up to Rs 3.99 Lakh
Q3- Up to Rs 3.78 Lakh
Q5- Up to Rs 4.99 Lakh
Q7- Up to Rs 6.68 Lakh
Q8- Up to Rs 8.34 Lakh
BMW Cars Price Drop Post GST Reform
BMW has 16 ICE-powered models in India, but only six will get GST reform price benefits for now. These are the 2 Series Gran Coupe, 3 Series LWB, 5 Series LWB, X1, X5, and X7. It’s still unclear if models like the 7 Series, X3, M4, or Z4 will get price cuts later.
Model-wise Price Reductions
2 Series Gran Coupe- Up to Rs 1.60 Lakh
3 Series LWB- Up to Rs 3.53 Lakh
5 Series LWB- Up to Rs 4.10 Lakh
X1- Up to Rs 1.80 Lakh
X5- Up to Rs 6.82 Lakh
X7- Up to Rs 9.23 Lakh
Mercedes-Benz Cars Price Drop Post GST Reform
Mercedes-Benz offers 21 ICE models in India. But just like others, price drops are confirmed for 8 specific models:
A-Class A 200d- Up to Rs 2.6 Lakh
C-Class C 300 AMG Line- Up to Rs 3.70 Lakh
S-Class S 450- Up to Rs 11 Lakh
GLA 220d AMG Line- Up to Rs 3.8 Lakh
GLC 300- Up to Rs 5.3 Lakh
GLS 450d AMG Line- Up to Rs 10 Lakh
GLE 450d 4Matic- Up to Rs 8 Lakh
E-Class LWB 450 4Matic- Up to Rs 6 Lakh
Notably, the electric vehicles won’t see any tax changes. Their prices remain stable.