In an effort to maintain sales momentum ahead of the rollout of GST in July, luxury carmakers have announced a slew of benefits to attract potential buyers.
BMW has announced benefits of up to 12 percent on ex-showroom prices of its select vehicles. In addition to the GST benefits, which the company hasn't specified, other benefits include reduced rate of interest of 7.90 percent, complimentary service and maintenance for three years, complimentary insurance for one year and assured buyback up to four years.
Similarly, Audi is offering attractive finance and insurance schemes, along with a service package covering full maintenance, warranty, wear and tear. Customers can choose a package from among a variety of time and mileage options as per their needs. The carmaker is offering these packages with immediate effect and they are applicable only till June 2017.
The announcement by Audi and BMW follows the decision by Mercedes to cut prices of its locally-assembled models in the range of 2-9 percent. The price revision ranges from Rs 1.2 lakh on its smallest locally-assembled models such as the CLA to Rs 7 lakh on the Mercedes-Maybach S500.
The move to offer additional benefits on luxury vehicles would prevent sales of such vehicles from slowing down in the weeks leading to the implementation of GST. Buyers are expected to hold off their purchases, as under GST, prices of luxury vehicles are set to drop. According to the proposed GST structure outlined by the government, there has been a considerable reduction in indirect taxes on large cars and SUVs (engines larger than 1,500cc) to 43 percent from an earlier rate of 45-55 percent.