Mercedes to cut ‘Made in India’ model prices by up to Rs seven lakh, Business Line
Mercedes to cut ‘Made in India’ model prices by up to Rs seven lakh
The fresh prices will be effective tomorrow through the entire of June
German luxury car maker Mercedes Benz is slashing prices of its vehicles produced in India by up to Rs seven lakh to pass on benefits of fresh tax rate under GST due in July.
The fresh prices will be effective tomorrow through the entire of June, but in case GST is deferred, the company said it would revert to the old prices till its rollout.
Mercedes Benz India locally produces nine models – CLA sedan, SUVs GLA, GLC, GLE and GLS, luxury sedans C-Class, E- Class, S-Class and Maybach S five hundred – which are priced inbetween Rs thirty two lakh and Rs 1.87 crore (ex-showroom Delhi).
The price reduction will range from Rs 1.Four lakh on the CLA sedan to Rs seven lakh on Maybach S 500.
Commenting on the decision, Mercedes-Benz India Managing Director and CEO Roland Folger told PTI, “It looks indeed reasonable now that the government will stick to its decision to implement GST from July 1.”
He further said, “We now know more in details what taxations are going to be in various states. We have a clear picture of the road ahead. So we have determined to compensate the difference inbetween the current and post GST prices for our entire Made in India range.”
On an average, there will be a reduction of four per cent in the transaction prices for customers of all models produced in India, Folger added.
Price reduction varies by state inbetween two per cent to nine per cent and is dependent on current tax structure and local bod taxes of states, the company said.
Folger, however, hastened to add that if for “any reason GST is not implemented by July 1, then we will revert to the old pricing till the time it is implemented”.
“Our decision to go ahead and reduce the price is also a reflection of our confidence of this government,” Folger added.
For the other models which are fully imported, Mercedes-Benz India is presently discussing about its pricing strategy under the GST regime. “The influence on the prices on CBU vehicles is yet to be evaluated. We think the implementation of the GST structure is a landmark achievement for the Indian economy, which will support the ease of doing business in India,” Folger said.
Under the GST rates announced last week, large luxury cars and SUVs with engine capacity of over 1,500 cc have been slated to attract a fifteen per cent cess over and above peak rate of twenty eight per cent thereby bringing down the overall tax incidence compared to the present of around fifty per cent.
