Mercedes-Benz India has announced that the transactional price of its entire locally assembled model range will decrease by 4%

    Price reduction will, however, vary from state to state between 2% and 9%
   
   Others like Jaguar-Land Rover have announced a price reduction on three of its models


CHENNAI:
 As luxury carmakers step on the gas to pass on GST benefits to customers, buyers of top car brands can look forward to 4-6% mark downs or price reductions to the tune of Rs 1.5 lakh-Rs 7 lakh for models assembled in India.

While some carmakers are awaiting further clarity on GST, a clutch of luxe automakers are already announcing markdowns and special benefits to spice up the market.

Mercedes-Benz India has announced that the transactional price of its entire locally assembled model range will decrease by 4% on "weighted average" with immediate effect.

Price reduction will, however, vary from state to state between 2% and 9% as it will be "dependent on current tax structure and local body taxes compared to new GST structure", said a company statement.

Given that this will mean customers withholding their purchase till the GST benefits kick in, the company is passing on "the transactional benefits to customers at an earlier stage to drive value in their purchase decisions".

The price benefit will cover all India-assembled models, including the GLA, C-Class, E-Class, SClass, GLC, GLE, GLS and Mercedes-Maybach S 500.

Arch-rival BMW pipped it to GST rush offering reduced rate of interest at 7.9%, complimentary 3 years’ service and maintenance, complimentary one-year insurance and assured buyback for up to four years in addition to GST benefits.

The offer, which the company said is for a limited period, is expected to ensure that customers don’t withhold their purchase till the GST rollout. Vikram Pawah, president of BMW Group India, said, "BMW is the fastest to offer preponed GST benefits to our customers much before the rollout of GST itself. Our customers will enjoy value-enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits."

Others like Jaguar-Land Rover have announced a price reduction on three of its models. The Discovery Sport, which earlier cost Rs 47.88 lakh (ex-Delhi) is now down to Rs 43.80 lakh.

The Range Rover Evoque is down from Rs 49.10 lakh to Rs 45.85 lakh and the Jaguar XE from Rs 39.90 lakh to Rs 37.25 lakh. The just-launched XE diesel has also worked in the new price dynamics being launched at a lower price range beginning at Rs 38.25 lakh. JLR assembles five models in India — the Jaguar XE, XF, XJ, Discovery Sport and the Range Rover Evoque.

Not all brands are toasting the GST windfall. Some like Toyota are unhappy about the rise in tax on hybrids given that the Lexus range for India are mostly hybrids. On its Fortuner range though the GST effect will lead to 5-6% price reduction when the tax structure is officially rolled out.

 26 May 2017, 01:03 PM