Luxury car buyers get festive cheer as Mercedes, BMW, JLR, Audi, and Volvo slash prices by up to Rs 30 lakh

Luxury car buyers in India are in for a treat this festive season. The PM Modi-led Central government's GST 2.0 reforms have lowered effective tax rates on premium vehicles, prompting automakers to pass on the benefits directly to customers.

Models from Mercedes-Benz, BMW, Jaguar Land Rover (JLR), Audi, and Volvo are now priced more attractively, with discounts reaching as high as Rs 30.40 lakh on select vehicles.

Earlier, luxury cars fell under the 28% GST bracket along with a compensation cess of 20–22%, taking the total tax burden to nearly 50%. Under the new GST 2.0 framework, they now sit in a 40% slab, resulting in significantly lower ex-showroom prices.


Electric vehicles remain at a 5% GST rate with no compensation cess, which has been removed for all kinds of vehicles in the GST 2.0 regime.

Mercedes-Benz India

Mercedes-Benz has cut prices on all ICE models starting September 22. Reductions reach up to Rs 11 lakh across SUVs and sedans.

Model	Price reduction (Rs)
GLA 220d 4MATIC AMG Line	3.8 lakh
GLC 300 4MATIC	5.3 lakh
GLE 450 4MATIC	8 lakh
GLS 450d AMG Line	10 lakh
A200d	2.6 lakh
C300 AMG Line	3.7 lakh
E-Class LWB 450 4MATIC	6 lakh
S 450 4MATIC	11 lakh

BMW Group India

BMW’s SUVs and sedans have seen reductions ranging from Rs 1.6 lakh to Rs 9 lakh, while MINI Cooper models are cheaper by Rs 2.5–3 lakh.

Model	Price reduction (Rs)
X1	1.8 lakh
X5	6.3 lakh
X7	9 lakh
2 Series Gran Coupe	1.6 lakh
3 Series LWB	3.4 lakh
5 Series LWB	4.1 lakh

Jaguar Land Rover India

JLR has passed on GST benefits ranging from Rs 4.5 lakh to Rs 30.4 lakh across its SUV line-up.

Model	Price reduction (Rs)
Discovery	4.5–9.9 lakh
Defender	7–18.6 lakh
Range Rover	4.6–30.4 lakh

Audi India

Model	Price reduction (Rs)
Q3	3.07 lakh
Q5	4.55 lakh
Q7	6.15 lakh
Q8	7.83 lakh
A4	2.64 lakh
A6	3.64 lakh

Volvo Car India

Volvo currently sells only two ICE SUVs in India: the XC60 and XC90. Price cuts are substantial.

Model	Price reduction (Rs)
XC60	4.79 lakh
XC90	6.93 lakh

The luxury car segment in India has been steadily growing. In FY25, sales crossed 50,000 units for the first time, reaching around 51,500. Mercedes-Benz led with 18,928 units, followed by BMW at 15,266 and JLR at 6,183 units.