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The new GST rates for cars, effective September 22, 2025, have shaken up the Indian luxury car market. While mainstream models see minimal adjustments, the spotlight is firmly on luxury cars and SUVs. With GST 2.0 reforms, premium vehicles such as the Mercedes-AMG G 63, Maybach GLS 600, and BMW X7 are now significantly more affordable, with customer benefits ranging from ₹1.6 lakh to over ₹25 lakh in some cases.

This article deep-dives into how GST reduction on cars is reshaping the segment, what it means for luxury buyers in India, and which models have become the best value propositions post the tax revision.

 

Understanding GST 2.0 and its Impact on Luxury Vehicles

Before the reform, luxury cars in India were subjected to a 28% GST plus a high compensation cess, which could be as much as 22% for large SUVs. This combination resulted in an effective tax rate of up to 50% of the ex-showroom price, making these vehicles prohibitively expensive.

The new GST structure simplifies this. Luxury cars and other vehicles with engine capacity over 1500cc or length exceeding 4000mm, now fall under a new, flat 40% GST slab with no additional compensation cess. This is a considerable reduction from the previous tax burden, translating into substantial savings for consumers.

 

Luxury Cars with New GST-Linked Prices: A Detailed Breakdown

This price revision has directly benefited a wide range of models. Here’s a breakdown of how popular Mercedes-Benz and BMW models have been impacted by the new GST rates.

Brand	Model	Old Price (₹ Lakh)	Revised Price (₹ Lakh)	Customer Benefit (₹ Lakh)
Mercedes	AMG GLC 43 4MATIC Coupé	105	99.35	5.65
Mercedes	AMG S 63 E PERFORMANCE	334	327	7
Mercedes	AMG GT 63 S E PERFORMANCE	334	327	7
Mercedes	AMG GLE 53 4MATIC Coupé	155	144.7	10.3
Mercedes	AMG G 63	385	359.35	25.65
Mercedes	AMG C 63 S E PERFORMANCE	195	190.9	4.1
Mercedes	AMG SL 55 4MATIC+	247.2	233.85	13.35
Mercedes	AMG C 43 4MATIC	99.4	94.05	5.35
Mercedes	AMG GT 63 4 Matic+	305	288.5	16.5
Mercedes	AMG GT 63 4 Matic+ Pro	365	345.3	19.7
Mercedes	G580	310	310	0
Mercedes	EQS 580 4MATIC	130	130	0
Mercedes	EQS SUV 580 4MATIC	147.5	147.5	0
Mercedes	EQE SUV 500 4MATIC	141.4	141.4	0
Mercedes	EQS SUV 450 4MATIC	133.5	133.5	0
Mercedes	EQB 350 4MATIC	78.9	78.9	0
Mercedes	EQB 250+	72.2	72.2	0
Mercedes	EQA 250+	67.2	67.2	0
Mercedes	A 200	46.05	44.45	1.6
Mercedes	A 200d	48.55	45.95	2.6
Mercedes	GLA 200	51.5	49.7	1.8
Mercedes	GLA 220d 4MATIC AMG Line	56.5	52.7	3.8
Mercedes	GLA 220d 4MATIC Progressive Line	54.5	50.9	3.6
Mercedes	C 200	61	58.9	2.1
Mercedes	C 220d	62	58.65	3.35
Mercedes	C 300 AMG Line	68	64.3	3.7
Mercedes	GLC 300 4MATIC	79.25	73.95	5.3
Mercedes	GLC 220d 4MATIC	79.25	73.95	5.3
Mercedes	E 200	83	78.5	4.5
Mercedes	E 220d	85	80.4	4.6
Mercedes	E 450 4MATIC AMG Line	96.9	91.65	5.25
Mercedes	GLE 300d 4MATIC AMG Line	103	96.15	6.85
Mercedes	GLE 450 4MATIC AMG Line	115	107.35	7.65
Mercedes	GLE 450d 4MATIC AMG Line	120	112	8
Mercedes	GLS 450 4MATIC	141.5	132.1	9.4
Mercedes	GLS 450d 4MATIC	144	134.4	9.6
Mercedes	S 450 4MATIC (With Nappa Leather)	199	188.25	10.75
Mercedes	S 350d (With Nappa Leather)	188	177.85	10.15
Mercedes	CLE 300 Cabriolet 4MATIC	117	110.7	6.3
Mercedes	Maybach S 680	367.2	347.35	19.85
Mercedes	Maybach GLS 600	339.1	316.5	22.6
Mercedes	Maybach S 580	290	274.3	15.7
Mercedes	Maybach SL 680 Monogram	435	411.5	23.5
Mercedes	Maybach EQS SUV 680	240	240	0
Mercedes	AMG CLE Coupe	135	127.7	7.3
BMW	X7	134.4	125.5	8.9
BMW	X5	100.3	93.7	6.6
BMW	X3	78.3	71.3	7
BMW	X1	52.4	50.6	1.8
BMW	5 Series	76.5	72.4	4.1
BMW	2 Series	46.9	45.3	1.6
BMW	3 Series	63.9	60.5	3.4

Note: All prices are in ₹ lakh and are ex-showroom. The price list above is for select models and is indicative of the price change. Final prices may vary based on specific variants and optional features.

 

Luxury Market Outlook Post-GST Cut

The new GST rates are a game-changer for the Indian luxury car market. The steepest price drops are seen in the most sought-after flagship models.

• The Mercedes-AMG G 63 is a prime example, now a massive ₹25.65 lakh cheaper, solidifying its position as one of the biggest gainers of this tax reform.
• Similarly, flagship luxury SUVs like the Maybach GLS 600 and the BMW X7 see major benefits, enhancing their value proposition in the ultra-luxury segment.
• It’s important to note that this reform has a different impact on electric vehicles. Luxury EVs, such as the Mercedes-Benz EQS and EQE range, remain unaffected. This is because they were already enjoying a significantly lower, concessional GST rate of 5%.

 

Conclusion: A New Era for Indian Luxury Car Buyers

The GST 2.0 reform is a landmark development for India’s automotive sector. By simplifying the tax structure and reducing the overall tax burden on luxury cars, the government has made these vehicles more accessible to a wider segment of affluent buyers. The revised prices are expected to drive up demand in the premium segment, particularly for high-value SUVs and performance-oriented models that have seen the most significant price reductions.

With the implementation date set for September 22, 2025, customers planning their purchase for the festive season-especially during Navratri-can already begin to benefit. Many dealerships are offering early booking options now, while ensuring that invoicing is completed post-implementation, so buyers can take full advantage of the reduced GST pricing.

Whether you’re considering iconic models like the Mercedes-AMG G 63, Maybach GLS 600, or the BMW X7, this is the perfect time to act. Luxury is now more within reach, and our team is here to make your purchase experience smooth and rewarding.

Enquire now, and let us help you book your dream car at the new, reduced prices-along with exclusive ongoing festive offers.

The GST Council has approved a major overhaul of the Goods and Services Tax framework, simplifying most rates into a two-slab structure of 5% and 18%, while introducing a new 40% special slab for select luxury and sin goods. The new architecture, being referred to as “GST 2.0,” is scheduled to come into effect from September 22, 2025.

For the automotive sector, the headline outcomes are clear:

• Small, mass-market cars will receive a significant tax reduction.
• Larger cars, SUVs, and high-end motorcycles will be moved to the higher 40% slab.
• Electric Vehicles (EVs) will continue to attract a concessional 5% GST.

These recommendations were issued after the 56th GST Council meeting and are intended to stimulate consumer demand and simplify the tax structure. This is a focused, practical guide on the new GST rates for cars, what “GST 2.0 on cars” actually changes, how GST on luxury cars in India is affected, and what buyers and dealers should watch for next.

 

What the Council Announced (Quick Facts)

• The GST Council recommended the new slabs and measures at its 56th meeting. The implementation date is set for September 22, 2025.
• The revised tax architecture consists of three main rates: 5% (concessional/essential goods), 18% (standard), and a 40% special slab for luxury and sin goods.
• For automobiles, small cars and motorcycles up to 350cc are shifted to the 18% rate. Mid/large cars and most SUVs are moved to the 40% slab.
• Electric vehicles (EVs) will continue to attract 5% GST, a clear signal of continued government support for green mobility.
• The previous system of a flat 28% GST plus a variable compensation cess has been rationalized to simplify the tax burden.

 

The Headline Change for Cars – Simplified Table

Vehicle Category (Tax Rule Snapshot)	Typical Pre-Change GST/Cess Mix	New GST Slab from 22-Sep-2025	What it Means in Plain Terms
Small petrol cars (≤4.0m / petrol ≤1,200 cc) and small diesel cars (≤4.0m / diesel ≤1,500 cc)	28% + applicable cess (varied, up to 3%)	18%	Significant price relief for mass-market small cars and a likely boost in sales.
Mid/large cars, SUVs, >1,500 cc or >4.0 m (and motorcycles >350cc)	28% + high cess (effective ~43–50%)	40% (no cess)	Luxury & big SUVs remain heavily taxed, but the structure is simplified. Some may see a marginal price drop due to the cess removal.
Electric vehicles (EVs, all sizes)	5% (concessional)	5% (unchanged)	Continued support for EV uptake. This removes any uncertainty about future tax hikes.
Car parts & accessories	Various (12%–18%–28%)	18%	The tax on aftermarket parts and components is now uniform, which may simplify service and repair costs in the medium term.

Note: The precise definitions for vehicle categories (engine cc, length, ground clearance) will be detailed in the upcoming Central Board of Indirect Taxes and Customs (CBIC) notifications. State-level registration fees and road taxes will also affect the final on-road prices.

 

How Big Will Retail Prices Move? (Best Available Estimates)

• For small cars, industry analysts and auto trade estimates point to a meaningful price fall of ~10–13% on ex-showroom prices for affected models. This is a combination of the reduced GST and the removal of the cess.
• For larger cars and SUVs, the shift to a flat 40% slab may result in a minor price reduction, as the new rate is lower than the previous effective tax rate (which could be as high as 50% including cess). Many large cars will remain expensive, but the simplified structure provides more clarity.
• Electric vehicles are a clear exception. By keeping the GST at 5%, the government has reassured buyers and manufacturers that the tax advantage for EVs will continue, supporting the clean mobility push.

 

Why the Government Did This (and Why it Matters Now)

The GST Council framed this as a simplification and demand-stimulation measure. By cutting rates on many mass-use items and small vehicles, the government aims to boost consumption, especially ahead of the festive season. At the same time, it is protecting revenue by concentrating higher rates on luxury and sin goods. For the auto sector, this move is a deliberate attempt to revive the small car segment, which has been losing market share to SUVs.

 

What This Means for Different Audiences

Buyers (Self-drive & Fleet)

• If you’re considering a small/mass-market car: Prices are set to become measurably cheaper after September 22. It is advisable to compare current quotes with post-cut prices and ask dealers about their “GST 2.0 pass-through” policy.
• If you’re considering a luxury SUV or big car: Don’t expect a massive price cut. Taxes remain high at 40%. Your negotiation should focus on on-road extras, accessories, and financing offers instead.
• For EV buyers: The decision to retain the 5% GST rate improves the calculus. Manufacturer incentives combined with this tax advantage will make EVs more attractive.

Dealers & OEMs

• OEMs will decide on a model-by-model basis how much of the GST saving to pass on to customers. This may involve selective price adjustments and short-term promotional offers.
• The upcoming CBIC notifications will be crucial for understanding transitional supplies, Input Tax Credit (ITC) adjustments, and dealer accounting procedures.

Finance & Used-Car Markets

• Lower GST on small cars and a harmonized 18% tax on parts will simplify margins and could reduce medium-term repair and servicing costs.
• Residual values may shift; small cars could hold their value better if demand picks up rapidly.

 

Caveats & Things to Watch (Read the Fine Print)

• The official legal notification from CBIC will be key. Read it for precise details on transitional rules and ITC adjustments.
• State-level actions matter. Registration fees and road tax policies can offset or amplify the central GST changes. Always confirm the final on-road price with your dealer.
• The OEM pass-through is not automatic. While most are expected to pass on savings, some may absorb part of the gain for market share.

 

Practical Checklist – What to Do Before September 22

• For small car shoppers: Get a current quote and be ready to compare it with a post-cut quote.
• For luxury/SUV hunters: Assume the tax remains high and focus your negotiations on finance, warranty, and service packages.
• For EV buyers: Expect stable GST benefits. Check for updated offers from manufacturers and dealers.
• For corporates and fleet managers: Revisit your total cost of ownership (TCO) models, as savings on small cars may change your fleet mix choices.

 

Quick Take – Winners and Losers (One-Line)

• Winners: Small cars, two-wheelers up to 350cc, essential goods, commuters, and EVs.
• Neutral/Losers: Large cars and some luxury SUVs (tax remains high), and motorcycles above 350cc (now taxed at 40%).

 

Final Verdict & Next Steps

This is a significant structural change. The new GST rates for cars, effective from September 22, 2025, simplify the tax slabs, provide immediate relief to small car buyers, and maintain a firm fiscal boundary around luxury goods. The ultimate benefit to the consumer will depend on OEM pricing strategies and state-level taxes. For all stakeholders, the immediate priority is to verify final on-road quotes after September 22 and understand the transitional rules in the official CBIC notification.

Stay informed with the latest updates on GST. Follow Motozite for real-time information. Call us now to get the exact price difference on your new car!

BMW is set to launch its next-gen iX3 on September 5, 2025, marking the debut of its Neue Klasse electric architecture. Promising an impressive 800 km range, 350 km fast-charging in just 10 minutes, and futuristic features like a panoramic dashboard, 3D HUD, and OS X infotainment, the iX3 is poised to redefine premium electric SUVs.

Expected in India by early 2026 with local assembly, it will compete directly with the Audi Q6 e-tron and the upcoming Mercedes GLC EV. Here’s everything about the BMW iX3 launch and what to expect.

Key Features & What to Expect from the iX3 Debut

Global Unveil: When & Where

The BMW iX3 will have its world premiere at the IAA Mobility 2025 show in Munich on September 5, 2025. This event is not just a launch; it’s the public unveiling of BMW’s first fully electric SUV built on the new Neue Klasse platform.

Platform, Range & Charging

The iX3 is a technological marvel built on BMW’s Gen6 electric architecture, known as Neue Klasse. This 800-volt platform is designed for ultra-fast charging and boasts a 20% increase in battery energy density over previous generations. The most impressive figures are its estimated range of up to 800 km (WLTP cycle) and its ability to add up to 350 km of range with just 10 minutes of fast-charging. This technology directly addresses one of the biggest concerns for EV buyers: range anxiety.

Design & Technology

Drawing inspiration from the Vision Neue Klasse X concept, the iX3 showcases a sleek, minimalist design with flush surfaces and an illuminated grille. The interior is equally futuristic, highlighted by several groundbreaking features:

• BMW Panoramic Vision: A windscreen-spanning projection that creates an immersive, digital interface.
• 3D Head-Up Display: Provides essential driving information in a dynamic, three-dimensional view.
• Operating System X (iDrive): A redesigned infotainment system that offers a seamless and intuitive user experience.
• AI-driven ADAS & “Superbrain” Computing: Advanced driver-assistance systems with semi-autonomous capabilities, powered by a central computer that orchestrates driving dynamics and safety functions.

 

Also Read: MBUX vs iDrive vs MMI – The Best Luxury Infotainment System (2025)

 

Powertrain & Performance

While specific power figures are yet to be officially released, the iX3 is confirmed to feature an advanced electric drivetrain. This will be supported by the “Heart of Joy” processing system, which synchronizes the vehicle’s driving dynamics and braking for a highly responsive and engaging ride.

 

Explore All Demo Cars

 

BMW iX3 in India: Launch and Local Assembly

The BMW iX3 is expected to arrive in the Indian market in early 2026. Reports suggest that the vehicle will be locally assembled at the BMW plant near Chennai, a strategic move that could lead to more competitive pricing and better availability.

This local production strategy has been a hallmark of BMW India’s success with other models, and it’s set to benefit the iX3 significantly.

 

Also Read: How to Improve Battery Life in Luxury EVs?

 

Why the BMW iX3 is a Game-Changer for the Indian Market

• Unrivaled Range & Fast Charging: The 800 km range and rapid charging capabilities make the iX3 a highly practical option for long-distance travel, a key factor for luxury SUV buyers in India.
• Flagship Technology: The integration of advanced features like BMW Panoramic Vision and OS X positions the iX3 as a technological leader, setting a new standard for in-cabin digital experience.
• Strong Competitive Edge: By blending range, performance, and cutting-edge design, the iX3 poses a significant challenge to its main competitors, the Audi Q6 e-tron and Mercedes GLC EV.
• Localization Advantage: Local assembly at the Chennai plant is a crucial step that can improve pricing, service network reach, and overall market uptake, making it a more attractive proposition for Indian consumers.

 

Conclusion

The debut of the BMW iX3 on September 5, 2025, is more than just a car launch; it’s the dawn of a new EV era for the brand. Built on the groundbreaking Neue Klasse platform, the iX3 is a perfect blend of efficiency, advanced technology, and signature BMW driving dynamics. For the Indian luxury EV market, its expected arrival in early 2026, coupled with local assembly, promises a new wave of competition and a compelling option for those seeking a premium, futuristic, and highly capable electric SUV.

Stay tuned with Motozite for comprehensive coverage of the BMW iX3’s full launch, including pricing, features, and booking updates.

Audi India has introduced a new Assured Buyback program through its dealer network, a significant move to address one of the biggest psychological barriers for luxury car buyers: depreciation. This program offers a guaranteed future value (GFV) of up to 60% of the ex-showroom price after three years or 45,000 km, and 50% after four years or 60,000 km.

This initiative is designed to ease ownership anxiety and boost festive-season sales. While competitors like BMW and Mercedes-Benz already offer similar assured-value plans (e.g., BMW 360, Mercedes Star Agility), Audi’s entry into this space is expected to strengthen buyer confidence, reduce perceived financial risk, and stabilize resale values for key models.

 

What does Audi’s Assured Buyback offer?

• Guaranteed Future Value (GFV):
  • 60% of the ex-showroom price after 3 years or 45,000 km.
  • 50% of the ex-showroom price after 4 years or 60,000 km.
• Eligible Models: The program covers six popular models: the A4, Q3, Q3 Sportback, A6, Q5, and Q7. This ensures that both sedan and SUV buyers can benefit.
• Finance Convenience: The program includes an option for low-EMI balloon finance at the end of the tenure, subject to the financier’s approval. This allows buyers to manage their monthly outgoings more efficiently.

In the luxury segment, a pre-declared exit price provides buyers with clarity on the total cost of ownership and a clear, predictable path for future upgrades.

 

Quick Example: The Assured Buyback Math

Let’s say you purchase an Audi A6 with an ex-showroom price of ₹70 lakh.

• After 3 years or 45,000 km, the guaranteed value would be ₹42 lakh (60%).
• After 4 years or 60,000 km, the guaranteed value would be ₹35 lakh (50%).

It’s important to note that this value is for the car’s ex-showroom price only and does not include registration, insurance, or accessories. The final valuation is also subject to the vehicle’s condition and adherence to the specified usage requirements.

 

How It Stacks Up Against Rivals?

• BMW 360°: BMW’s program offers assured buyback with end-of-term flexibility, including options to upgrade, retain, refinance, or return the car. It can also be bundled with service and warranty packages for predictable total costs.
• Mercedes-Benz Star Agility: This finance program, offered through Mercedes-Benz Financial Services, provides a guaranteed buyback value and flexible tenure options, often with the ability to add maintenance packages.

By introducing its own program, Audi is now on a level playing field with its primary competitors, removing a key reason for potential buyers to choose a rival brand.

 

Likely Impact on Audi’s Sales and Residual Values

• Higher Showroom Conversions: A guaranteed exit price combined with lower EMIs from a balloon finance structure can significantly accelerate purchasing decisions, especially for first-time luxury buyers during the festive season.
• Better Residual Value Optics: Publicly offering a floor price signals the brand’s confidence in its vehicles and can help stabilize used car prices for its core models, making them more attractive in the pre-owned market.
• Easier Upgrade Cycles: The program simplifies the process of trading up to a new Audi, as buyers have a transparent understanding of their vehicle’s equity. This is particularly useful as technology, such as ADAS and infotainment systems, continues to evolve rapidly.

 

Key Considerations Before You Sign

Before committing to the program, make sure to clarify the following with the dealership:

• Model Eligibility and City Coverage: Confirm if the program is available for your desired model and in your city, as it’s a dealer-led initiative.
• Tenure and Kilometer Caps: The valuation is tied to strict limits (3 years/45,000 km or 4 years/60,000 km). Exceeding these caps will affect the guaranteed value.
• Vehicle Condition Guidelines: Understand the fine print on vehicle condition, including service history, accidental damage, tire wear, and accessory installations.
• Finance Small Print: Scrutinize the details of the balloon amount, processing fees, prepayment/foreclosure terms, and insurance requirements.

 

Is Audi’s Assured Buyback Right for You?

Opt for it if you:

• Desire a predictable exit value and plan to upgrade your car every 3-4 years.
• Prefer lower monthly EMIs and are comfortable with a larger payment at the end.
• Want to avoid the uncertainty and hassle of open-market resale.

Skip or compare alternatives if you:

• Drive a high annual mileage and will likely exceed the kilometre caps.
• Plan to keep your car for 6-8 years or longer, as the program’s benefits are less relevant for long-term ownership.
• Believe you can secure a better resale price on the open market (this is rare for luxury cars, but can be possible for well-maintained, low-mileage vehicles).

 

Bottom Line

Audi India’s Assured Buyback program is a strategic and welcome move that aligns the brand with its market-leading rivals. By offering a 60% and 50% guaranteed value structure and a balloon finance pathway, it effectively reduces the fear of depreciation for luxury shoppers. For anyone considering an A4, A6, Q3, Q5, or Q7, this program is a compelling reason to visit a dealership and explore the benefits.

 

Thinking about an Audi with Assured Buyback?

Ping us and we’ll help you compare dealer offers, explain the balloon math, and find the right configuration and tenure for your budget.

The GST impact on cars in India directly shapes vehicle affordability, with current taxes reaching up to 50% on luxury cars and SUVs. While small cars face a lower burden, the government’s proposed GST reduction on cars could simplify rates to 18% for most vehicles and 5% for EVs, offering relief to mass-market buyers. However, luxury vehicles may still attract a steep 40% slab, keeping prices high.

This article analyzes the current GST on cars, proposed reforms, and their implications for consumers and the automobile industry in India.

 

What is GST on Cars?

Introduced in July 2017, GST absorbed multiple indirect taxes like excise duty, VAT, and octroi, streamlining India’s tax system. Instead of layered taxation, cars are now taxed under a single GST regime, which combines a base GST rate (28%) plus a compensation cess for most vehicles.

The exception: Electric Vehicles (EVs), which enjoy just 5% GST with no additional cess a clear move to promote green mobility.

 

GST Rates on Cars in India (Current)

The GST on cars is determined by engine size, car length, and ground clearance. Luxury cars and SUVs attract a higher cess, while small cars are taxed less.

Current GST Slabs on Cars

Vehicle Type	Engine Size & Length	Base GST Rate	Compensation Cess	Total Effective Tax
Small Petrol Cars	< 1200cc, < 4m	28%	1%	29%
Small Diesel Cars	< 1500cc, < 4m	28%	3%	31%
Mid-size Sedans	> 1200cc, > 4m	28%	15%	43%
Luxury Cars	> 1500cc	28%	20%	48%
SUVs	> 1500cc, > 4m, > 170mm ground clearance	28%	22%	50%
Electric Vehicles	All sizes	5%	None	5%

 

Proposed GST Rate Overhaul (2025)

The government is considering a two-tier GST structure with reduced slabs for simplification.

Vehicle Type	Proposed New GST Slab	Potential Impact
Small Cars (petrol/diesel)	18%	Major price reduction (11-13% cheaper).
Luxury Cars & SUVs	40% (special slab)	Minimal relief, tax burden remains high.
Electric Vehicles (EVs)	5% (unchanged)	Tax advantage narrows as ICE cars become cheaper.

 

GST’s Impact on the Automobile Industry

For Consumers

• Affordable small cars: Post-GST, compact and mid-size cars became cheaper. The proposed 2025 reforms could reduce small car prices even further.
• Luxury cars remain expensive: Despite GST simplification, luxury cars and SUVs still face nearly 40% tax.

For Manufacturers

• Simplified tax compliance: GST allows input tax credit (ITC) on raw materials and components, reducing costs.
• Encouragement for EV production: With only 5% GST, automakers are investing more in electric mobility.

For Dealers

• GST standardization has simplified billing and compliance.
• Used car sales are taxed only on the profit margin, reducing dealer liability.

 

GST on Luxury Cars – A Separate Case

Luxury vehicles in India are among the most heavily taxed segments, with total levies touching 48–50% of the ex-showroom price. For instance, a luxury SUV priced at ₹1 crore ex-showroom may attract nearly ₹50 lakh in GST and cess, effectively doubling the final price for consumers.

While these high levies ensure significant government revenue, they also limit India’s luxury car penetration compared to global benchmarks, where luxury vehicles are relatively more accessible.

If the proposed 40% GST slab is implemented, luxury car buyers may still see only modest relief. Much will depend on how much of the tax benefit OEMs choose to pass on to customers, as manufacturers often balance price positioning, brand perception, and market dynamics when deciding final sticker prices.

 

Conclusion

The impact of GST on cars in India, particularly GST on luxury cars and SUVs, continues to be a subject of debate. The numbers vary widely depending on whether you consider the pre-tax assessable value, ex-showroom price, or the extent to which OEMs pass on tax benefits to customers. While proposals such as reducing the base GST slab to 18% and creating a 40% special slab for luxury cars have generated buzz, the real effect on car prices remains uncertain.

For buyers of luxury cars like the Mercedes-Benz S-Class, BMW 7 Series, or Audi Q7, the effective tax burden today can reach nearly 50% of the ex-showroom price. Even if new slabs are introduced, the final benefit will depend on how much manufacturers actually pass to the end consumers.

At this stage, something concrete can only be expected after the GST Council meeting, where official decisions will be finalized and notified.

With so much speculation and confusion, it’s best to rely on trusted updates. Follow Motozite to stay informed with clear, verified insights on GST changes, car prices, and the latest developments in the automobile industry.

 

References

1. Press Information Bureau – Government of India – Major Announcements Point 3
2. Ministry of Finance – GST Council Updates – GST Council Meeting
3. Analysis of GST’s broader effect on India’s automobile industry: ClearTax – GST Impact on Automobile Industry
4. Groww – GST on Car: GST rate structure and vehicle taxation breakdown

To celebrate the 50th anniversary of the iconic 3 Series, BMW India has introduced the BMW 3 Series Jahre Edition in two exciting avatars: the 330Li M Sport (Long Wheelbase), priced at ₹64 lakh, and the M340i, priced at ₹76.9 lakh (ex-showroom). Both are limited to 50 units each, assembled locally in Chennai, and sold exclusively through BMW’s online shop. The M340i Jahre Edition even comes with a unique collectable-a 1:18 scale model of the legendary BMW 3.0 CSL. For enthusiasts, this limited run isn’t just about performance but about owning a piece of BMW’s living history.

 

A Golden Tribute to 50 Years of Driving Excellence

Marking a half-century of the legendary BMW 3 Series’ success, BMW has crafted two limited-edition models for the Indian market: the 330Li M Sport ‘50 Jahre’ Edition and the M340i ‘50 Jahre’ Edition. These exclusive vehicles pay homage to a legacy that began in 1975, offering a blend of special design elements, enhanced luxury, and celebratory exclusivity.

 

Why are the BMW ’50 Jahre’ Editions so special?

• Limited Production: Only 50 units of each model are available, making them highly sought-after collector’s items.
• Iconic Heritage: The ’50 Jahre’ emblem celebrates 50 years of BMW M GmbH, the high-performance division of BMW.
• Exclusive Upgrades: Both models feature unique styling and interior enhancements not found on the standard versions.

Let’s delve into the specifics of each model.

 

Also Read: BMW India Price Hike from September 1, 2025

 

BMW 330Li M Sport ‘50 Jahre’ Edition Highlights

This long-wheelbase (LWB) version offers a perfect blend of luxury and dynamic performance.

• BMW Jahre Edition Price: The ex-showroom price is ₹64.00 lakh, which is approximately ₹1.4 lakh higher than the standard 330Li M Sport.
• Distinctive Styling:
  • M High-Gloss Shadowline trim.
  • Blacked-out kidney grille, diffuser, and tailpipes for an aggressive look.
  • Exclusive 18-inch M alloy wheels in a Jet Black finish.
• Enhanced Luxury Features:
  • Interior trim in Carbon Fibre.
  • BMW Curved Display with a 12.3-inch digital instrument cluster and a 14.9-inch touchscreen infotainment system.
  • BMW Head-up Display with 3D navigation.
  • Panoramic sunroof.
• Rarity Factor: A ‘1/50’ laser-engraved badge on the B-pillar, emphasizing its exclusivity.
• Performance:
  • Engine: 2.0-litre four-cylinder turbocharged petrol engine.
  • Power: 258 hp.
  • Torque: 400 Nm.
  • Acceleration: 0-100 km/h in just 6.2 seconds.

 

BMW M340i ‘50 Jahre’ Edition Highlights

The M340i ’50 Jahre’ Edition is for the enthusiast who craves pure driving performance.

• BMW Jahre Edition Price: The ex-showroom price is ₹76.90 lakh, a premium of about ₹1 lakh over the standard M340i xDrive.
• Sporty Detailing:
  • Special ’50 Jahre’ emblems on the hood, trunk, and wheel hubcaps.
  • Gloss-black M badging and accents.
  • Carbon fibre M Performance parts, including a rear spoiler and mirror caps.
• Interior Refinement:
  • Black Vernasca leather with M stitching.
  • Carbon Fibre trim accents throughout the cabin.
  • Anthracite headliner.
  • M steering wheel.
• Powertrain:
  • Engine: 3.0-litre straight-six, twin-turbocharged petrol engine.
  • Power: 374 hp.
  • Torque: 500 Nm.
  • Acceleration: 0-100 km/h in a blistering 4.4 seconds.
• Collector’s Bonus: Each unit comes with a 1:18 scale model of the iconic BMW 3.0 CSL, making it a true automotive keepsake.

 

Why These Editions Matter

The BMW 3 Series ‘50 Jahre’ Edition is more than just a commemorative model; it embodies the spirit of the 3 Series’ journey from its inception in 1975 to its status as a benchmark for sport sedans today. With limited production, premium upgrades, and the thrill of exclusivity, these editions are not just cars-they are statements of legacy and passion for driving.

 

Bottom Line

If you’re an automotive connoisseur seeking a unique blend of exclusivity, heritage, and exhilarating performance, the BMW 3 Series ’50 Jahre’ Edition-whether in 330Li or M340i form-is the perfect choice. With only 50 units of each available, they are destined to become highly sought-after collector’s items. Contact your nearest BMW dealership or get in touch with the Motozite team to explore availability and secure your chance to own a piece of automotive history.

The wait is over for Indian performance enthusiasts. Mercedes-Benz has officially launched the Mercedes-AMG CLE 53 4MATIC+ Coupé, with an ex-showroom price of ₹1.35 crore across India. This new two-door performance coupe masterfully combines the agility of the C-Class with the sophisticated presence of the E-Class, all while delivering a pure, exhilarating AMG driving experience.

Engine & Performance: The Heart of the AMG

Under the hood, the AMG CLE 53 is powered by an advanced 3.0-litre twin-turbo inline-six petrol engine. This is complemented by a 48-volt mild-hybrid system and an electric auxiliary compressor, resulting in a powerful and responsive powertrain.

• Output: The engine produces a robust 449 hp and 560 Nm of torque. For short bursts of maximum performance, an overboost function temporarily increases torque to 600 Nm.
• Mild-Hybrid System: The integrated starter-generator (ISG) provides an additional 23 hp and 205 Nm of torque, enhancing both performance and efficiency.
• Performance Metrics: The AMG CLE 53 can accelerate from 0 to 100 km/h in a blistering 4.2 seconds. Its top speed is electronically limited to 250 km/h, which can be raised to 270 km/h with the optional AMG Driver’s Package.

 

Drivetrain & Handling: Engineered for Adrenaline

To ensure a dynamic and controlled ride, the coupe features the AMG Performance 4MATIC+ all-wheel drive system and is paired with a quick-shifting AMG SPEEDSHIFT TCT 9G automatic transmission. The standard-fit AMG RIDE CONTROL steel suspension with adaptive damping and rear-axle steering provides superior agility at low speeds and exceptional stability on high-speed corners.

 

Design & Exterior: Unmistakably AMG

The exterior design of the CLE 53 leaves no doubt about its performance credentials. It features the signature AMG-specific Panamericana grille with vertical slats, muscular flared wheel arches, and a long, flowing bonnet. The rear is defined by slim LED tail lights, a sporty diffuser, and a quad-exhaust system, giving it a powerful and aggressive stance. Standard wheels are 19 inches, with optional 20-inch alloys also available.

 

Interior & Technology: The Pinnacle of Luxury and Tech

The cabin of the AMG CLE 53 is a blend of sportiness and high-tech luxury. It features:

• Dual-Display Cockpit: A 12.3-inch digital instrument cluster and a portrait-oriented 11.9-inch central touchscreen, powered by the latest MBUX infotainment system with AMG-specific displays.
• Premium Comfort: The sports seats are upholstered in ARTICO man-made leather and MICROCUT microfibre, with red contrast stitching. The interior is further enhanced by a panoramic sunroof, ambient lighting, and a Burmester 3D surround sound system.
• Driver-Focused Features: The car comes equipped with wireless Apple CarPlay/Android Auto, a head-up display, wireless charging, and an 8-airbag safety system, along with a comprehensive suite of Advanced Driver Assistance Systems (ADAS).

 

Why the Launch of the AMG CLE 53 is Important

The Mercedes AMG CLE 53 launch is a significant event for the Indian market. With its stunning design, blistering performance, and competitive AMG CLE 53 price in India, it fills a unique niche for buyers who seek a thrilling and exclusive driving experience beyond the standard C- or E-Class models. This new coupe is a testament to Mercedes-AMG’s continued commitment to delivering top-end luxury and performance to the Indian automotive landscape.

Porsche has introduced an exciting new special edition of its highly popular Macan SUV for the Indian market. This new variant comes equipped with a comprehensive “Design Package,” offering a range of aesthetic upgrades that sharpen the SUV’s visual appeal both inside and out. The launch price for this limited-run model is set at ₹96.05 lakh (ex-showroom).

The new Design Package is a strategic move to provide customers with an exclusive and distinct-looking Macan without altering its core performance. While the special edition is priced the same as the standard Macan, a significant catch is that the Design Package is complimentary for the first 30 buyers.

Following this limited-time offer, the package will be available as an add-on for a premium of ₹7.5 lakh, both for new buyers and existing Macan owners looking to upgrade their vehicle’s aesthetics.

 

A Detailed Look at the Package

The Design Package is a collection of accessories and styling elements that collectively give the Macan a more aggressive and personalized feel. The most prominent of these is the inclusion of the Sport Design Package.

• Exterior Enhancements: The Macan with the Design Package is instantly recognizable. The Sport Design Package replaces the standard bumpers and side skirts with body-colored front and rear aprons and side skirts, creating a more cohesive and low-slung look. The side-view mirrors (ORVMs) are finished in a sleek black, providing a sharp contrast. Other exterior touches include tinted LED tail-lights, a new sportier exhaust pipe, and colored hub caps that add a subtle splash of color to the wheels. Underneath the doors, LED puddle lamps project the Porsche logo onto the ground, a premium touch that enhances both style and functionality.
• Interior Upgrades: The interior receives a similar treatment, focusing on a sportier and more luxurious feel. The gear knob is now finished in black, and the vehicle is equipped with the “Carbon Interior Package,” which introduces a carbon-coloredfinish to the dashboard and door panels. These changes create a more driver-focused cockpit, subtly elevating the cabin’s atmosphere and sense of occasion.

 

Performance Remains Unchanged

Underpinning these stylistic changes is the same robust mechanical package that makes the Macan a leader in its segment. The car is powered by a 2.0-liter, four-cylinder turbocharged petrol engine that produces a healthy 265 horsepower and 400Nm of torque. Power is sent to all four wheels through Porsche’s renowned PDK dual-clutch transmission.

This powertrain combination allows the SUV to accelerate from a standstill to 100 km/h in a brisk 6.4 seconds. For drivers who desire a more exhilarating launch, the optional Sport Chrono Package can shave this time down to an even quicker 6.2 seconds.

By offering this new Design Package, Porsche is giving its Indian clientele a chance to own a Macan that stands out from the crowd, combining the brand’s core values of performance and precision with a fresh, exclusive aesthetic.

Mumbai, August 5, 2025 — In a strategic leadership move, Škoda Auto Volkswagen India (SAVW India) has appointed Mr. Nipun Mahajan as Head of Sales & Network for Audi India, effective August 1, 2025. Reporting to Brand Director Balbir Singh Dhillon, Mahajan steps into a pivotal role during a challenging phase for the luxury automaker in India, Autocar Professional.

Mr. Mahajan brings nearly three decades of automotive expertise, spanning global and Indian markets. His most recent posting was with Stellantis Malaysia, where he oversaw sales and marketing operations across ASEAN nations. Before that, he held senior roles at Fiat Chrysler Automobiles (FCA) India, Harley‑Davidson India, Honda, Volkswagen, and Porsche.

 

Why the Timing Matters

Audi India has been under pressure. Retail volumes dropped significantly—from 7,931 units in 2023 to 5,816 in 2024, a decline of 26.6%, followed by a further 14% year‑on‑year drop to 2,128 units in the first half of 2025. Prolonged supply chain constraints and fierce competition from Mercedes‑Benz and BMW have dampened momentum.

Luxury car volumes in India crossed 50,000 mark for the first time in 2024 and is projected to exceed 50,000 units annually. Audi’s declining share signals an urgent need for revitalisation. Mahajan’s appointment is clearly aimed at arresting the slide and positioning the brand for a strong comeback.

 

Network & Retail Reinvigoration

Mr. Mahajan arrives with a clear mandate: revamp Audi’s retail network across India. He is tasked with strengthening dealer relationships, optimizing regional sales performance, and preparing the ecosystem for accelerated EV adoption and digital retail transformation.

His proven experience in dealer restructuring, regional growth planning, and omni‑channel customer engagement strategies aligns with Audi’s broader shift toward electrification and tech‑led retail evolution.

 

Deep and Diverse Track Record

Mr. Mahajan’s previous leadership milestones underscore his suitability:

• At Stellantis ASEAN, he managed a multi‑market commercial strategy, adapting to diverse consumer behaviors and regulatory environments.
• With FCA India, he led sales, service, and planning efforts during Jeep’s entry into the Indian market, introducing multi‑brand dealership formats and retail innovation.
• At Harley‑Davidson India, he headed sales and service operations, refining luxury two‑wheeler customer experience standards.

His cross‑functional insights—combining engineering, marketing, finance, and after‑sales —bring a holistic outlook essential for turning around a heritage luxury brand in transition.

 

Challenges Ahead

Audi India’s path to recovery will require more than incremental tweaks:

1. Addressing inventory constraints and supply disruptions that have hurt customer satisfaction.
2. Rebuilding market appeal with compelling new launches—especially EVs—to match rival investments.
3. Revitalizing customer experience, including digital retail tools and brand‑level engagement, to stay relevant in an increasingly competitive landscape.
4. Leveraging EV infrastructure readiness, aligning sales strategy with India’s evolving electrification push.

Mr. Mahajan’s prior exposure to both luxury combustion and EV segments positions him suitably for this multifaceted transformation.

 

What Lies Next

Under Mr. Mahajan and Mr. Dhillon’s leadership, Audi India is expected to roll out dealer restructuring programs, refine sales territories, and expand the Audi Select / re‑defined retail formats that blend digital engagement with personalized showroom experiences. Viewing India as a growth engine again, Audi aims to leverage Mr. Mahajan’s strengths in execution and network excellence to rebuild lost ground.

If executed effectively, this leadership change could mark the beginning of a strategic revival, realigning Audi India to an electrified, digitally savvy, and customer‑centric future.

 

In Summary

• Mr. Nipun Mahajan assumed charge as Audi India’s Head of Sales & Network on August 1, 2025.
• His appointment comes amid a declining luxury sales trend, with stagnant numbers and market share loss.
• Mr. Mahajan is expected to lead dealer optimisation, customer‑centric retail innovation, and EV readiness.
• With nearly 30 years of leadership across brands including FCA, Harley‑Davidson, and Stellantis, he brings broad-based expertise and transformation experience.

Audi India’s next chapters will unfold as Mr. Mahajan maps retail reinvention, network strategy, and electrification, bearing heavily on whether the automaker can recapture lost momentum in a highly competitive luxury segment.

In a bold move aimed at redefining customer experience and ownership satisfaction, Audi India has rolled out a pioneering service initiative—offering a 10-year extended warranty and a 15-year Roadside Assistance (RSA) program. With this, Audi becomes the first brand in the Indian luxury automotive segment to introduce such comprehensive long-term care options, setting a new benchmark for after-sales support.

This new offering is designed not just for new buyers but also existing Audi customers, reflecting the brand’s deeper commitment to peace of mind and long-term vehicle support. Available for all models in the Audi portfolio, the program has been crafted to provide customers with exceptional flexibility, reliability, and confidence throughout a decade and beyond.

The 10-Year Extended Warranty gives owners the option to extend their standard warranty coverage up to a total of 10 years. Customers can choose to opt in at the time of purchase or at any point before their standard or existing extended warranty expires. The initiative significantly enhances protection against unexpected repairs and service costs, aligning with Audi’s goal to make luxury ownership less stressful and more rewarding over time.

Complementing this is the 15-Year Audi Roadside Assistance Program, an industry-leading support system available across India. Whether it’s a flat tyre, battery issue, fuel shortage, or the need for towing, the RSA program ensures that help is never too far away, even if the car is over a decade old. For Audi, this isn’t just about extending coverage—it’s about reinforcing its brand promise of trust and support, long after the initial sale.

Speaking on the announcement, Mr. Balbir Singh Dhillon, Head of Audi India, emphasized the company’s philosophy of building long-term relationships. He stated that the extended warranty and RSA program represent Audi’s commitment to placing the customer at the centre of everything, offering unmatched convenience and reliability as part of the overall ownership journey.

Both the warranty and the RSA services are available for purchase at Audi dealerships across India and on the brand’s official website, myAudi Connect. The programs offer flexibility in terms of duration and can be customized based on the customer’s needs and vehicle age, ensuring accessibility and value for both new and existing owners.

In a competitive market where post-sale service is often the differentiator, Audi India’s initiative raises the bar. It not only secures customer loyalty but also adds a compelling reason for prospective buyers to consider the brand, not just for the cars, but for the promise that comes with them.

With this move, Audi India is not just selling vehicles—it’s selling assurance, longevity, and an ecosystem of support that few rivals currently match