Mercedes Reduces Prices Post-GST 2.0 – Up to ₹25 Lakh in Savings

In a landmark move following the government’s GST 2.0 reforms, Mercedes-Benz India has announced revised prices post GST reform, offering substantial price reductions across its entire luxury car and SUV lineup. With benefits of up to ₹11 lakh, this strategic pricing overhaul makes Mercedes-Benz’s flagship models, including the S-Class and GLS, as well as popular core models like the E-Class and C-Class, more accessible to Indian consumers.

These new, reduced prices will be effective from September 22, 2025, aligning with the rollout of the revised GST framework, marking a significant milestone for the brand in India.

 

Key Facts & Figures

  • What is GST 2.0? The central government’s GST Council has introduced a simplified two-slab tax structure with a special demerit rate.
    • Essential goods: 5%
    • Most other goods and services: 18%
    • Luxury/Demerit Goods: 40%
  • Impact on Luxury Cars: The GST 2.0 reform has replaced the previous tax regime of 28% GST + a compensation cess (which ranged from 17-22% and pushed the total tax burden to 45-50%) with a flat 40% tax rate. This removal of the cess component is the primary reason for the price reduction on large and luxury vehicles.
  • Effective Date: The new prices will be applicable from September 22, 2025.
  • Electric Vehicles (EVs): Mercedes-Benz’s all-electric EQ models (EQS, EQE, EQB) will retain their previous prices, as EVs continue to be taxed at a concessional rate of 5% GST.

 

Mercedes-Benz Model-Wise Price Reduction

Here’s a detailed breakdown of how the new GST regime impacts popular Mercedes-Benz models:

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

Please note that the price cuts mentioned are based on available reports and may vary slightly depending on the specific variant, optional extras, and location.

  • Highest Savings: The flagship S-Class sedan offers the highest benefit of ₹11 lakh, making it a more attractive proposition in the ultra-luxury segment.
  • SUV Segment: Popular SUVs like the GLS and GLE now see a price reduction of up to ₹10 lakh and ₹8 lakh, respectively, boosting their competitiveness in the Indian market.
  • Core Models: The C-Class and GLC, which are volume drivers for the brand, are now more accessible with price cuts of up to ₹3.7 lakh and ₹5.3 lakh, respectively.
  • Entry-Level Luxury: For aspirational buyers, models like the GLA have become more affordable, with a price drop of ₹3.8 lakh on the GLA 220d 4MATIC AMG Line.
  • Maybach & AMG: While specific variant prices are yet to be confirmed by the company, other luxury brands have also reduced prices for their high-performance and ultra-luxury models. Mercedes-Benz is expected to follow suit with a similar pricing strategy for its AMG and Maybach lineups.

 

What This Means for Buyers

  • Perfect Timing for Festive Season: The timing of the price reduction aligns perfectly with the upcoming festive season, creating a significant incentive for new and first-time luxury car buyers.
  • Boost to the Luxury Market: The revised tax structure is expected to stimulate demand and provide a much-needed boost to the overall luxury automotive sector, as vehicles become more affordable.
  • Competitive Advantage: By passing on the GST benefits, Mercedes-Benz India is reinforcing its market leadership and offering a strong value proposition to customers.

 

Final Take

Mercedes-Benz India’s proactive move to pass on the full benefits of the GST 2.0 reform to its customers reaffirms its commitment to the Indian market. The price rationalization simplifies the tax structure and significantly lowers the cost of ownership, making the dream of owning a three-pointed star more attainable than ever before. This bold step is set to create a new wave of growth and excitement in India’s luxury car segment.

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