The Indian automotive market witnesses a wave of price reductions as the government’s GST 2.0 framework comes into effect. Mercedes-Benz India leads the charge with significant price cuts across its product range. The new tax regime, effective September 22, 2025, simplifies vehicle taxation by imposing a flat 40% GST on all passenger cars. This replaces the previous structure of 28% GST and an additional cess, thereby lowering the overall tax liability on premium and luxury vehicles. Electric vehicles continue to enjoy preferential tax treatment, aligning with the government’s commitment to green transportation. Mercedes-Benz will fully transfer the tax savings to customers, a move timed to coincide with the festive season. Skoda India joins the trend with appealing festive offers and GST-related benefits. Skoda Kodiaq offers savings of up to Rs 5.8 lakh, Kushaq up to Rs 3.1 lakh, and Slavia up to Rs 1.8 lakh. Mahindra buyers can save on several models: 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, and XUV700 Rs 1.43 lakh. Toyota also provides savings on various models: Glanza up to Rs 85,300, Urban Cruiser Taisor up to Rs 1,11,100, Rumion up to Rs 48,700, Urban Cruiser Hyryder up to Rs 65,400, Innova Crysta up to Rs 1,80,600, Innova Hycross up to Rs 1,15,800, Fortuner up to Rs 3,49,000, Legender up to Rs 3,34,000, Hilux up to Rs 2,52,700, Camry up to Rs 1,01,800, and Vellfire up to Rs 2,78,000.
Mercedes-Benz price reductions include: GLA 220d 4MATIC AMG Line down by Rs 3.8 lakh, GLC 300 4MATIC by Rs 5.3 lakh, GLE 450 4MATIC by Rs 8 lakh, GLS 450d AMG Line by Rs 10 lakh, A 200d (entry-level saloon) by Rs 2.6 lakh, C 300 AMG Line by Rs 3.7 lakh, E-Class LWB 450 4MATIC by Rs 6 lakh, and S 450 4MATIC (Flagship Sedan) by Rs 11 lakh.