Mercedes, BMW, JLR, Audi, Volvo Slash Prices by Up to ₹30 Lakh After GST 2.0 Reforms

India’s luxury car market is set to sparkle this festive season, as leading automakers including Mercedes-Benz, BMW, Jaguar Land Rover (JLR), Audi, and Volvo have slashed prices by as much as ₹30.40 lakh. The sharp cuts come after the government’s GST 2.0 reforms, which lowered effective tax rates on premium vehicles.

GST 2.0 Brings Relief to Luxury Car Buyers

Until now, luxury cars were taxed at 28% GST plus a 20–22% compensation cess, pushing the total tax burden close to 50%. Under the new GST 2.0 framework, these vehicles are now placed in a 40% slab, significantly reducing ex-showroom prices.

Electric vehicles continue to attract just a 5% GST, and the compensation cess has been removed across all vehicle categories.

How Car Prices Have Changed

• BMW Group India: SUVs and sedans are now cheaper by ₹1.6–9 lakh, while MINI Cooper models have seen price reductions of ₹2.5–3 lakh.
• Jaguar Land Rover (JLR): Discounts range from ₹4.5 lakh to ₹30.4 lakh across its SUV lineup.
• Volvo Car India: Its two ICE SUVs, the XC60 and XC90, have seen substantial cuts, making them more competitive in their segment.
• Mercedes-Benz & Audi: Price adjustments across popular models are expected to further lift demand in the coming months.

Market Outlook

The timing is significant, as India’s luxury car market is already on an upward trajectory, with sales crossing 50,000 units in FY25. With the festive season approaching, automakers are optimistic that the tax-driven price cuts will further accelerate demand.

Read More: Hyundai Share Price in Focus; Announces Price Cuts Following GST Reforms: Check Model Wise Details.

Conclusion

The GST 2.0 reforms have created a win-win scenario: luxury car buyers benefit from steep discounts, while automakers gain momentum in an expanding market. For aspirational buyers, this festive season could be the perfect moment to drive home a premium vehicle at a much lower price.

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