The government is all set to implement the centralised taxation system, GST (Goods and Service Tax) in India. Meanwhile, the industries are up to revise the prices of their product lineup as the current scenario of the market price will be affected by the soon-to-be-implemented GST. and Automotive industry is no untouched of it, the carmakers across the country, especially luxury car manufacturers, have started to offer discounts and benefits on their product line up, as the luxury vehicles are expected to be more affordable once the GST came into effect, reportedly from July 1, 2017.
Also Read: GST Impact on Automobile Industry in India
Recently, Mercedes-Benz India has announced a price cut in the range between 2 and 9 percent depending on different tax structures, across its entire range of locally assembled vehicles. The report says, the minimum price cut will be made to the entry level locally assembled Mercedes-Benz CLA (Delhi ex-showroom - INR 30.6 lakh) with a discount of INR 1.4 lakh, while the maximum discount of INR 7 lakh is available on the range-topping Mercedes-Maybach S500 which is previously priced INR 1.8 Crore, Delhi ex-showroom .
However, the official prices will be revealed tomorrow. The company has confirmed that the completely built imported cars will be exempted from the current price cut, such cars share 15 percent market in company’s India sales.
“We have decided to pass on the GST benefits at an earlier stage at our cost. This approach will benefit customers who want to purchase a locally produced Mercedes-Benz from now on and during June,” said Roland Folger, managing director and chief executive, Mercedes-Benz India.
On the other hand, BMW, however, not reduced price of its product lineup in India but offering hefty benefits which include reduced rates of interest, complimentary insurance, assured buyback schemes, complimentary service and maintenance, all these offers all valid till June 30. The company believed that such benefits are more valuable than the price cut.
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