Mercedes-Benz India Revises Prices After GST 2.0 Reforms

Mercedes-Benz India has announced a fresh round of price revisions across its sedan and SUV lineup, following the implementation of the Goods and Services Tax (GST) 2.0. The luxury carmaker confirmed that the full benefit of the revised taxation will be directly passed on to customers, making its portfolio more competitively priced.

The GST 2.0 update—introduced by Finance Minister and GST Council Chairperson Nirmala Sitharaman after the 56th Council meeting—has streamlined taxation for automobiles. While smaller cars, two-wheelers up to 350cc, and farm machinery have moved into lower slabs, luxury vehicles measuring over 4,000mm or carrying larger engines are now taxed at 40%. Electric cars, however, continue to attract the concessional 5% GST, underlining the government’s commitment to clean mobility.

A Mercedes-Benz India spokesperson stated: “In keeping with our customer-first approach, we are delighted to extend the full benefit of GST 2.0 to buyers. This revision enhances affordability across our range, while staying aligned with the government’s new framework.”

Revised Ex-Showroom Prices (Effective September 22, 2025)

These updated prices will apply across all Mercedes-Benz showrooms in India starting September 22, 2025.

The broader GST reforms are expected to lift automotive demand ahead of the festive season, with mass-market players seeing the biggest gains. However, Mercedes-Benz’s prompt price adjustment ensures that luxury buyers too stand to benefit, potentially boosting sales and customer confidence in the premium segment.

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