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GST 2.0: All Premium Car Price Drop Details Here
Following the recently announced GST reforms, buyers of luxury cars from Mercedes-Benz, BMW, Audi, and Mini can now expect significant price reductions - with savings of up to ₹11 lakh on select models.
Under the new norms, all 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 40% GST rate with no additional cess. This replaces the earlier structure of 28% GST plus an additional cess of up to 22%, which meant effective taxation in the 45-50% range.
The revised rates will be applicable from September 22, 2025. Meanwhile, electric vehicles (EVs) remain unaffected by this reform, as their GST rates stay unchanged.
Audi - Savings Up To Rs 7.83 Lakh
Audi has nine ICE-powered cars on sale in India, but GST 2.0 benefits will be applied to six models: the A4, A6, Q3, Q5, Q7, and Q8. Popular models like the S5, Q3 Sportback, and RSQ8 are not included yet.
| Model | Current Price Range (lakh) | Maximum Price Drop (lakh) |
|---|---|---|
| A4 | Rs 48.89 – Rs 58.25 | Rs 2.64 |
| A6 | Rs 67.38 – Rs 73.88 | Rs 3.64 |
| Q3 | Rs 46.14 – Rs 56.76 | Rs 3.07 |
| Q5 | Rs 69.36 – Rs 74.85 | Rs 4.55 |
| Q7 | Rs 92.29 – Rs 100.20 | Rs 6.15 |
| Q8 | Rs 118.00 | Rs 7.83 |
BMW - Savings Up To Rs 8.90 Lakh
BMW currently offers 16 ICE-powered models in India, though GST cuts have been confirmed for only six so far: the 2 Series Gran Coupe, 3 Series LWB, 5 Series LWB, X1, X5, and X7. Updates on the 7 Series, X3, M4, and Z4 are awaited.
| Model | Current Price Range (lakh) | Maximum Price Drop (lakh) |
|---|---|---|
| 2 Series Gran Coupe | Rs 46.90 | Rs 1.60 |
| 3 Series LWB | Rs 63.90 – Rs 65.30 | Rs 3.40 |
| 5 Series LWB | Rs 76.50 | Rs 4.10 |
| X1 | Rs 52.40 | Rs 1.80 |
| X5 | Rs 100.30 – Rs 102.30 | Rs 6.30 |
| X7 | Rs 134.40 – Rs 138.40 | Re 8.90 |
Mercedes-Benz - Savings Up To Rs 11 Lakh
Mercedes-Benz, with 21 ICE-powered cars in India, has so far announced GST price cuts for six select models, including the A-Class A200d, C-Class C300, S-Class S450, GLA 220d, GLC 300, and GLS 450d. Separately, the E-Class will also see a cut of up to ₹5.2 lakh.
| Model | Current Price Range (lakh) | Maximum Price Drop (lakh) |
|---|---|---|
| A 200d | Rs 48.55 | Rs 2.60 |
| C 300 | Rs 68.00 | Rs 3.70 |
| S 450 | Rs 199.00 | Rs 11.00 |
| GLA 220d | Rs 54.50 – Rs 56.50 | Rs 3.80 |
| GLC 300 | Rs 79.25 | Rs 5.30 |
| GLS 450d | Rs 142 – Rs 144 | Rs 10.00 |
Mini - Savings Up To Rs 3 Lakh
Mini, which sells only the Cooper S in India, has also announced revised ex-showroom prices across its variants.
Mini Cooper S Price Reduction After GST 2.0
| Variant | Current Price (lakh) | Maximum Price Drop ( lakh) |
|---|---|---|
| Essential Pack | Rs 46.20 | Rs 2.50 |
| Classic Pack | Rs 51.95 | Rs 2.75 |
| Favoured Pack | Rs 55.00 | Rs 3.00 |
| JCW Pack | Rs 57.50 | Rs 3.00 |
DriveSpark Thinks
The GST 2.0 reforms mark a turning point for luxury car buyers in India, making premium German brands more accessible than before. With price cuts ranging from Rs 1.6 lakh to Rs 11 lakh, the luxury car segment is expected to see a surge in demand post-September 22.
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