Under GST: Luxury Cars See Major Price Reductions
Luxury cars are now more affordable thanks to GST revisions, with savings ranging from ₹4 lakh to over ₹30 lakh, depending on the model. Brands benefiting from these reductions include Mercedes-Benz, BMW, Audi, Land Rover, and Volvo.
With the new GST rates taking effect soon, now is an ideal time to purchase a luxury vehicle. Automakers have passed the savings directly to consumers, leading to significantly lower prices for high-end cars.
For example:
Mercedes-Benz: The GSL SUV is expected to drop by around ₹10 lakh, the S-Class by more than ₹10 lakh, the GLE by ₹6–8 lakh, and the E-Class by over ₹5 lakh.
BMW
The X5 and X7 are now less expensive by nearly ₹7 lakh and ₹9 lakh, respectively, while the 5 Series LWB sees a reduction of around ₹4 lakh.
Audi
Q8 prices have fallen by almost ₹8 lakh, Q7 by more than ₹6 lakh, and Q5 by ₹4.5 lakh.
Land Rover
Price reductions range from ₹4.5 lakh to over ₹30 lakh, with the Range Rover seeing the largest cut. The Defender’s price drops by ₹7–18.6 lakh.
Volvo: The new XC60 is ₹4.79 lakh cheaper, and the XC90 drops by more than ₹7 lakh.
According to a previous Mint article, the GST Council has voted to lower the tax on small automobiles from 22% to 18%. Four-wheelers with an engine displacement of up to 1,200cc and a maximum length of 4,000 mm (less than four meters) are referred to as small cars. This small car limit applies to diesel cars with an engine displacement of 1,500 cc and a length of up to 4,000 mm.
According to a recent Kotak Institutional Equities study on the GST, passenger vehicles (SUVs) that are larger than 1,500cc have also become more affordable because they will now be subject to a flat 40% GST rate instead of their previous 28% GST and 22% Cess rates. This means that the end user will pay less for the SUVs.
