The GST effects : Merc cuts prizesMercedes cuts prizes as more Brands to follow !
Luxury carmakers, hit by diesel ban in the National Capital Region and demonetisation in recent times, are treading cautiously in the run-up to the Goods and Services Tax (GST).
Buyers of top car brands can look forward to 4-6% mark downs or price reductions to the tune of Rs 1.5 lakh-Rs 7 lakh for models assembled in India.
Mercedes-Benz India has announced that the transactional price of its entire locally assembled model range will decrease by 4%
Price reduction will, however, vary from state to state between 2% and 9%
Others like Jaguar-Land Rover have announced a price reduction on three of its models
The price revision on a weighted average of 4% will be effective immediately, and is aimed at providing value to a customer’s purchase decision before GST implementation. Price reduction will, however, vary from state to state between 2% and 9% as it will be “dependent on current tax structure and local body taxes compared to new GST structure”, said a company statement.
Mercedes-Benz India locally assembles nine models, including the CLA sedan, sports utility vehicles GLA, GLC, GLE and GLS, luxury sedans C-Class, E- Class, S -Class and Maybach S500, which are priced between Rs32 lakh and Rs2 crore (ex-showroom, Delhi). The price reduction will range from Rs1.4 lakh on the CLA sedan to Rs7 lakh on the Maybach S500.
The Mercedes Showrooms in Ahmedabad have a rush for interested buyers and the market scenario raises eyebrows for a luxury car for best deal.
BMW is offering discounts and benefits until actual price cut happens to keep sales intact. Companies do not want to take any hit on sales. Vikram Pawah, president of BMW Group India, said GST will strengthen and foster growth in the country and benefit consumers at large.