Mercedes Benz India, Audi India, and BMW India have announced an immediate downward revision of prices of their ‘Made in India’ models. Prices are being slashed by 12% so as to bring prices on par with (Goods and Services Tax) GST rates, will be with immediate effect.
Revision of prices in this manner will allow buyers to opt for purchases from now and through the month of June. This will add further impetus to purchase in the next two months rather than buyers postponing purchases till the month of July 2017, which is when the GST comes into effect officially.
Roland Folger, CEO and MD, Mercedes Benz India.
The Mercedes car models which have seen a revision of prices include – CLA, GLA, C-Class, E-Class, S-Class, GLC, GLE, GLS and Mercedes-Maybach S 500. For BMW India, it is their 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series, X1, X3 and X5. For Audi, their local assembly includes models like the A4, A6, A8, Q3, Q5, and Q7.
In addition to slashing of prices, BMW India has also announced reduced rate of interest of 7.90%, complimentary 3 years service and maintenance and 1 year complimentary insurance along with assured buy back upto 4 years. However, these offers are for a limited period only.
All three luxury car brands now look forward to the positive effects of the introduction of GST. The trio visualizes growth momentum in the luxury car segment and is posed to see increased growth in the months ahead. However, while these reduced prices are being offered only on its “Made in India” range, the companies are yet to take decision on price revision on CBU vehicles.
Under the new tax regime which is expected to come into effect from 1st July 2017, all luxury vehicles on sale in the country would attract a 28% GST along with maximum cess of 15% which could mean that customers will have to pay 43%. As on date, the effective tax on price of luxury vehicle stands at 52%-55%.