Luxury carmakers are offering discounts to boost sales before GST

If you have been waiting for a drop in the price of your favourite luxury car, now is the time to bring it home.

For Delhi buyers, a Mercedes-Benz Maybach, one of its most luxurious cars, is now available with a price drop of as much as Rs 7 lakh.

Several such ‘Made in India’ luxury vehicles have seen a drop in their prices, since manufacturers are offering lower prices to keep sales momentum going before goods and services tax (GST) gets implemented in July this year.

Since after GST the tax levied on this segment is expected to go down, buyers could be postponing buying luxury vehicles to post GST period. The companies, however, don’t want their sales to go down in this period, hence the attractive offers including lower prices and better finance schemes.

For Mercedes-Benz, the entire range of ‘Made in India’ vehicles has seen an average price cut of 4%. Similarly, BMW is also offering a series of benefits, like price and financing benefits, complimentary service and maintenance for three years, free insurance for the first year, and assured buyback for up to four years.

Cars and SUVs have been placed in the highest GST slab of 28%, on top of which there would be a cess of 1-3% on small cars and 15% on large vehicles.

However, the current levies on luxury vehicles go up to 55%, which means after GST, these cars would have lesser taxes of to 12%.

Audi India, however, is still studying the impact of GST before going ahead with the price changes, if any.

(Image source Motor Trend)