Following the recently-announced GST reforms, those looking to buy a new luxury car from manufacturers like Mercedes-Benz, BMW, Audi, and Mini can save up to Rs 11 lakh on ex-showroom pricing.
As per the new norms, cars above 4 metres in length and/or with petrol engines above 1,200cc and diesel engines above 1,500cc will be taxed at a flat GST rate of 40 percent with no additional cess, as opposed to the prior 28 percent GST rate with up to 22 percent of additional cess, which worked out to effective taxation of 45 to 50 percent.
The reformed GST rates will go into effect starting September 22, 2025. It's also worth noting that GST rates for EVs will see no change post-reform, so their prices will remain unaffected.
Audi
Q3 price to drop by up to Rs 3.07 lakh.
Audi has nine ICE-powered models on sale in India, and the German carmaker has announced GST reform price reductions for six of them, namely the A4, A6, Q3, Q5, Q7, and Q8; the S5, Q3 Sportback, and RSQ8 are missing. Here's how much you can save on these six Audi models after the revised GST rates kick in:
| Audi cars price reduction after GST 2.0 | ||
|---|---|---|
| Current price range (Rs, lakh) | Maximum price reduction (Rs, lakh) | |
| A4 | 48.89-58.25 | 2.64 |
| A6 | 67.38-73.88 | 3.64 |
| Q3 | 46.14-56.76 | 3.07 |
| Q5 | 69.36-74.85 | 4.55 |
| Q7 | 92.29-100.20 | 6.15 |
| Q8 | 118.00 | 7.83 |
BMW
X1 price to see reduction of up to Rs 1.60 lakh.
BMW sells a whopping 16 ICE-powered cars in India, but has confirmed forthcoming GST benefits for only six so far: the 2 Series Gran Coupe, 3 Series LWB, 5 Series LWB, X1, X5, and X7. It remains to be seen whether BMW models like the 7 Series, X3, M4, Z4, etc will receive any GST reform price drops, and if so, by how much.
Here's a price comparison of the six BMW models before and after the GST revisions:
| BMW cars price reduction after GST 2.0 | ||
|---|---|---|
| Current price range (Rs, lakh) | Maximum price reduction (Rs, lakh) | |
| 2 Series Gran Coupe | 46.90 | 1.60 |
| 3 Series LWB | 63.90-65.30 | 3.40 |
| 5 Series LWB | 76.50 | 4.10 |
| X1 | 52.40 | 1.80 |
| X5 | 100.30-102.30 | 6.30 |
| X7 | 134.40-138.40 | 8.90 |
Mercedes Benz
Up to Rs 11 lakh price drop for S-Class.
Mercedes-Benz leads the pack here with 21 ICE-powered models on sale in the Indian market, but much like Audi and BMW, it has announced GST reform price drops for only six models yet, that too specific variants like the A-Class A 200d, C-Class C 300, S-Class S 450, GLA 220d, GLC 300, and GLS 450d. Prices for the E-Class were separately confirmed to see a reduction of up to Rs 5.2 lakh.
It remains to be seen how prices for other variants, AMG models, and Maybach models will be impacted following the GST reform.
| Mercedes Benz cars price reduction after GST 2.0 | ||
|---|---|---|
| Current price range (Rs, lakh) | Maximum price reduction (Rs, lakh) | |
| A 200d | 48.55 | 2.60 |
| C 300 | 68.00 | 3.70 |
| S 450 | 199.00 | 11.00 |
| GLA 220d | 54.50-56.50 | 3.80 |
| GLC 300 | 79.25 | 5.30 |
| GLS 450d | 142-144 | 10.00 |
Mini
Cooper S price to reduce by up to Rs 3 lakh.
Since Mini sells only one ICE-powered model in India – the Cooper S – its GST benefits are fairly straightforward to decode. Here's how the Mini Cooper S price will change once the GST reforms go into effect:
| Mini Cooper S price reduction after GST 2.0 | ||
|---|---|---|
| Variant | Current price (Rs, lakh) | Maximum price reduction (Rs, lakh) |
| Essential Pack | 46.20 | 2.50 |
| Classic Pack | 51.95 | 2.75 |
| Favoured Pack | 55.00 | 3.00 |
| JCW Pack | 57.50 | 3.00 |
All prices are ex-showroom, India.
Also see:
Mercedes E Class prices dropped by up to Rs 5.2 lakh post GST reform
Midsize and large cars price drop under new GST rate calculated
