With the recent GST reforms announced by the government, the tax structure on automobiles has undergone significant changes. These reforms have revised the GST rates based on several factors, including the size of the vehicle, engine capacity, body style, and whether the vehicle has hybrid capabilities.
As a result of these changes, prices for a wide range of vehicles have been reduced. Automakers have responded by offering substantial discounts on select models to pass on the benefits to consumers.
Mercedes Benz
Mercedes-Benz India has announced a significant price reduction across its entire range of cars and SUVs following the implementation of the new GST 2.0 framework by the Government of India.
The new tax structure, which comes into effect from September 22, 2025, rationalizes vehicle taxation by placing all passenger cars under a flat 40% GST slab, replacing the earlier system of 28% GST plus an additional cess of up to 22%. This effectively lowers the total tax incidence on premium and luxury cars from around 50% to 40%, making them more affordable.
Electric vehicles, however, remain the biggest beneficiaries of India’s progressive tax policy, continuing to attract a concessional GST rate. This move reinforces government efforts to encourage clean and sustainable mobility.
Updated Prices Across Mercedes-Benz Lineup
| Model | Old Price | New Price | Price Drop |
|---|---|---|---|
| GLA 220d 4MATIC AMG Line | Rs 56.50 lakh | Rs 52.70 lakh | Rs 3.8 lakh |
| GLC 300 4MATIC | Rs 79.25 lakh | Rs 73.95 lakh | Rs 5.3 lakh |
| GLE 450 4MATIC | Rs 1.15 crore | Rs 1.07 crore | Rs 8 lakh |
| GLS 450d AMG Line | Rs 1.44 crore | Rs 1.34 crore | Rs 10 lakh |
| A 200d (entry-level saloon) | Rs 48.55 lakh | Rs 45.95 lakh | Rs 2.6 lakh |
| C 300 AMG Line | Rs 68 lakh | Rs 64.30 lakh | Rs 3.7 lakh |
| E-Class LWB 450 4MATIC | Rs 97 lakh | Rs 91 lakh | Rs 6 lakh |
| S 450 4MATIC (Flagship Sedan) | Rs 1.99 crore | Rs 1.88 crore | Rs 11 lakh |
Skoda’s Festive Offers and GST Benefits
Skoda India is also offering attractive festive deals and GST-linked benefits across its lineup:
- Skoda Kodiaq: Enjoy GST benefits of up to Rs 3.3 lakh, plus festive discounts worth up to Rs 2.5 lakh, for total potential savings of Rs 5.8 lakh.
- Skoda Kushaq: Comes with GST savings of up to Rs 66,000 and additional festive offers of up to Rs 2.5 lakh, allowing buyers to save up to Rs 3.1 lakh.
- Skoda Slavia: Available with GST benefits of up to Rs 63,000 and festive discounts of up to Rs 1.2 lakh, making for total savings of Rs 1.8 lakh.
Mahindra’s Discount on all its Vehicles
| Model | Savings |
|---|---|
| Bolero / Bolero Neo | Rs 1.27 lakh |
| XUV3XO Petrol | Rs 1.40 lakh |
| XUV3XO Diesel | Rs 1.56 lakh |
| Thar 2WD Diesel | Rs 1.35 lakh |
| Thar 4WD Diesel | Rs 1.01 lakh |
| Scorpio Classic | Rs 1.01 lakh |
| Scorpio N | Rs 1.45 lakh |
| Thar Roxx | Rs 1.33 lakh |
| XUV700 | Rs 1.43 lakh |
Savings on the purchase of Toyota models
| Model | Savings (Up to) |
|---|---|
| Glanza | Rs 85,300 |
| Urban Cruiser Taisor | Rs 1,11,100 |
| Rumion | Rs 48,700 |
| Urban Cruiser Hyryder | Rs 65,400 |
| Innova Crysta | Rs 1,80,600 |
| Innova Hycross | Rs 1,15,800 |
| Fortuner | Rs 3,49,000 |
| Legender | Rs 3,34,000 |
| Hilux | Rs 2,52,700 |
| Camry | Rs 1,01,800 |
| Vellfire | Rs 2,78,000 |
Beyond these brands, Hyundai has also reduced the prices of its vehicles in the recent past. The brand stated that it was eager to provide the benefits of the GST tax cuts to the users from day one. Here is a consolidated list of all the price changes that Hyundai has done.
| Model | Approx. Price Reduction (INR) |
|---|---|
| Hyundai Tucson | ₹2,40,303 |
| Hyundai Alcazar | ₹1,20,000+ (estimated) |
| Hyundai Creta | ₹1,20,000+ (estimated) |
| Hyundai Verna | ₹1,20,000+ (estimated) |
| Hyundai Venue | ₹60,000 – ₹1,20,000 (range) |
| Hyundai i20 | ₹60,000 – ₹1,20,000 (range) |
| Hyundai Exter | ₹60,000 – ₹1,20,000 (range) |
| Hyundai Aura | ₹60,000 – ₹1,20,000 (range) |
| Grand i10 Nios | ₹60,000 – ₹1,20,000 (range) |
The upcoming few months will offer prospective car buyers a great chance at upgrading to the vehicle of their dreams, especially with the extensive discounts coming their way. It’s possible that in the near future, brands will announce special discounts above the GST reduction, as the year-end is approaching and resellers generally plan to sell off existing stocks before the new year.