Mercedes-Benz Reduces Prices in India

German luxury car maker Mercedes-Benz is reducing the price of its cars for the whole month of June in India. The price reduction will range from $2,170  on the CLA sedan to $10,850  on its Maybach S 500.

The company seeks to pass on the benefits of the new tax rate under GST due to be implemented on July 1, to its customers. However, in case GST is deferred, the company said it would hold the current  prices reports Firstpost.

Mercedes-Benz-New-E-Class--2

Mercedes-Benz India managing director and CEO Roland Folger said, “We now know more in details what taxes are going to be in various states. So we have decided to compensate the difference between the current and post GST prices for our entire Made in India range. Our decision to go ahead and reduce the price is also a reflection of our confidence in this government.”

Per GST rates, large luxury cars and SUVs with engine capacity of over 1.5 liters attract a 15 percent “cess” over and above peak rate of 28 percent, bringing down the overall tax incidence compared to the present of about 50 percent.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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