GST 2.0 Impact: Mercedes-Benz slashes prices by up to Rs 10 lakh!

Mercedes-Benz India has announced price cuts of 5–8 per cent, or up to Rs 10 lakh depending on the model, after the GST Council decides to implement a uniform 40 per cent tax on luxury cars from September 22, 2025, with the full benefit being passed on to customers, while electric vehicles will continue under the lower 5 per cent GST bracket.Commenting on the revision, Mercedes-Benz India noted, “In line with our commitment to our customers, we are pleased to share that Mercedes-Benz India will be passing on the entire benefit of the GST reduction directly to the end customers.” Let’s take a look at the reduced prices of the models.

Mercedes-Benz’s most accessible offerings, the GLA SUV and the A-Class Limousine, have both benefited from the revised GST rate. The GLA 220d 4MATIC AMG Line now carries a revised sticker price of Rs 52.70 lakh, reflecting a reduction of about Rs 4.20 lakh from its earlier Rs 56.50 lakh tag. Similarly, the A200d has become more affordable by nearly Rs 3 lakh, and is now priced at Rs 45.95 lakh compared to Rs 48.55 lakh previously. This adjustment narrows the gap with the top-end versions of premium mainstream cars, making them attractive options for customers stepping into the luxury segment for the first time.

Price cuts extend to mid-segment models such as the C-Class sedan and GLC SUV, both of which play a critical role for Mercedes in India. The C-Class sees an average decrease of Rs 5–6 lakh across variants. The GLC SUV sees an average decrease of Rs 6–7 lakh across variants. Talking about the GLE, the 450 4MATIC now comes in at Rs 1.07 crore, down by roughly Rs 8 lakh from its earlier price of Rs 1.15 crore. Meanwhile, the GLE 300 4MATIC AMG Line has seen a reduction of about Rs 5 lakh, with its price revised to Rs 73.95 lakh from Rs 79.25 lakh.

Among the most notable adjustments is the E-Class Long Wheelbase, a consistent bestseller for Mercedes in India. The E200 Petrol is now priced at Rs 78.5 lakh (down Rs 6.2 lakh). The E220d Diesel is now priced at Rs 80.5 lakh (down Rs 5.5 lakh). The E450 4MATIC AMG Line is now at Rs 91.7 lakh (down Rs 6.2 lakh). Along with the price drop in the E Class, the company has also introduced a new Verde Silver paint to commemorate its almost a year-long run.

At the top end, the S-Class and GLS SUV deliver the highest cash savings under the revised pricing. The S 450 4MATIC has received a reduction of about Rs 11 lakh, bringing its price down to Rs 1.88 crore from the earlier Rs 1.99 crore. Likewise, the GLS 450d AMG Line is now tagged at Rs 1.34 crore, following a cut of nearly Rs 10 lakh from its previous Rs 1.44 crore price.