Mercedes, BMW, Audi car prices drop by up to Rs 11 lakh with GST reform

Following the recently announced GST reforms, those looking to buy a new luxury car from Mercedes-Benz, BMW, Audi, Volvo, Lexus and Mini can save up to Rs 20.80 lakh on ex-showroom pricing.

As per the new norms, cars above 4 metres in length and/or with petrol engines above 1,200cc and diesel engines above 1,500cc will be taxed at a flat GST rate of 40 percent with no additional cess. Previously, the rate was 28 percent GST and 22 percent cess, which worked out to effective taxation of 43-50 percent.

The reformed GST rates will go into effect starting September 22, 2025. It's also worth noting that GST rates for EVs will see no change post-reform, so their prices will remain unaffected.

Audi cars price drop after GST reform

Q3 price could drop by up to Rs 3.78 lakh.

Audi has nine ICE-powered models on sale in India, and the German carmaker has announced GST reform price reductions for six of them, namely the A4, A6, Q3, Q5, Q7, and Q8; the S5, Q3 Sportback, and RSQ8 are not included for now. Here's how much you can save on these six Audi models after the revised GST rates kick in:

BMW cars price drop after GST reform

X1 to see price reduction of up to Rs 1.80 lakh.

BMW sells a whopping 16 ICE-powered cars in India, but has confirmed forthcoming GST benefits for only six so far: the 2 Series Gran Coupe, 3 Series LWB, 5 Series LWB, X1, X5 and X7. It remains to be seen whether the 7 Series, X3, M4, Z4, and others will get a price drop, and if so, by how much.

Here's a price comparison of the six BMW models before and after the GST revisions:

Lexus cars price drop after GST reform

LX flagship SUV pricing to come down by Rs 20.80 lakh.

The entire Lexus India range, namely the ES, NX, RX, LM and LX, will see price reductions thanks to the upcoming revised GST slabs. Listed below are the savings you can expect if you're considering bringing home a new Lexus:

Mercedes Benz cars price drop after GST reform

Up to Rs 11 lakh price drop for S-Class.

Mercedes-Benz leads the pack here with 21 ICE-powered models on sale in the Indian market, but much like its German competitors, it has announced GST reform price drops for only specific variants of six models – the A-Class A 200d, C-Class C 300 AMG Line, S-Class S 450, GLA 220d AMG Line, GLC 300 and GLS 450d AMG Line. Prices for the E-Class were separately confirmed to see a reduction of up to Rs 5.2 lakh.

It remains to be seen how prices for other variants, and AMG and Maybach models will be impacted following the GST reform.

Mini cars price drop after GST reform

Cooper S price to reduce by up to Rs 3 lakh.

Since Mini sells only one ICE-powered model in India – the Cooper S – its GST benefits are fairly straightforward to decode. Here's how the Mini Cooper S price will change once the GST reforms go into effect:

Volvo cars price drop after GST reform

Savings of up to Rs 6.93 lakh on XC90.

Volvo India has announced that both of its ICE models – the XC60 and XC90 – will receive price cuts when the new GST rates come into force. Here's how much you can save on a new Volvo in the near future:

All prices are ex-showroom, India.

Also see:

Mercedes E Class prices dropped by up to Rs 5.2 lakh post GST reform

Midsize and large cars price drop under new GST rate calculated