Just a bit more affordable luxury! High-end vehicles from Mercedes, BMW, Audi, and Jaguar have experienced price reductions due to new tax changes introduced by GST 2.0, drawing attention both in shops and on the street. It could be time to take control of your luxury vehicle if you’ve ever wanted to drive one.
The introduction of GST 2.0 has recently significantly increased the market for premium cars in India. Internal combustion engine (ICE) vehicle taxes have been reduced to a uniform 40% due to the rationalization of tax rates, placing premium models on par with mid-sized mass-market cars over four meters. Luxury car manufacturers have announced broad price reductions across their portfolios as the new system goes into effect on September 22, 2025.
GST 2.0 Brings Massive Price Cuts On Luxury Brands
BMW
The BMW X7 is now Rs 8.9 lakh less expensive. BMW is providing the greatest possible benefits. A detailed list of BMW vehicles and the price reduction under GST 2.0 can be seen here:
- Rs 1.6 lakh for a BMW 2 Series Gran Coupe
- Rs 3.4 lakh for the BMW 3 Series LWB
- Rs 4.1 lakh for the BMW 5 Series LWB
- Rs 1.8 lakh for the BMW X1
- Rs 6.6 lakh for a BMW X5
- Rs 8.9 lakh for the BMW X7
Mercedes-Benz
All Mercedes-Benz dealerships in India will have to start charging the revised prices for Mercedes-Benz’s most popular vehicles from September 22, 2025.
- A 200 Mercedes-Benz: Rs 2.6 lakh
- C 300 Mercedes-Benz: Rs 3.7 lakh
- GLA Mercedes: Rs 3.8 lakh
- GLC Mercedes: Rs 5.3 lakh
- Mercedes-Benz E-Class LWB: Rs 6 lakh
- GLE Mercedes-Benz: Rs 8 lakh
- Mercedes-Benz GLS: Rs 10 lakh
- Mercedes-Benz S-Class: Rs 11 lakh
Jeep
Under GST 2.0, Jeep India lowers car costs by up to Rs 4.8 lakh. The Grand Cherokee will profit the most from the revised Jeep automobile prices, which take effect on September 22.
- Up to Rs 2.16 lakh for the Jeep Compass
- Jeep Meridian: Rs 2.47 lakh
- Jeep Wrangler: Up to Rs 4.84 lakh
- Up to Rs 4.50 lakh for the Jeep Grand Cherokee
JLR
Customers of Jaguar Land Rover’s entire ICE lineup will receive the full benefit of the recent Goods and Services Tax (GST) cut, the company announced. The range of benefits is Rs 4.6 lakh to Rs 9.9 lakh.
- Range Rover: From Rs 4.6 lakh to Rs 30.4 lakh
- Land Rover Defender: Rs 7 lakh to Rs 18.6 lakh
- Land Rover Discovery: Rs 4.5 lakh to Rs 9.9 lakh
Audi
To pass on the GST savings starting on September 22, 2025, Audi India has announced a price reduction of more than Rs 7.8 lakh.
- Audi A4 costs Rs 2.64 lakh
- Rs 3.64 lakh for an Audi A6
- Audi Q3: Rs 3.7 lakh
- Audi Q5 costs Rs 4.55 lakh
- Audi Q7: Rs 6.15 lakh
- Audi Q8: Rs 7.83 lakh
Luxury Cars Now More Affordable
| Brand | Model | Price Reduction (Rs) |
|---|---|---|
| BMW | 2 Series Gran Coupe | 1.6 Lakh |
| BMW | 3 Series LWB | 3.4 Lakh |
| BMW | 5 Series LWB | 4.1 Lakh |
| BMW | X1 | 1.8 Lakh |
| BMW | X5 | 6.6 Lakh |
| BMW | X7 | 8.9 Lakh |
| Mercedes-Benz | A 200 | 2.6 Lakh |
| Mercedes-Benz | C 300 | 3.7 Lakh |
| Mercedes-Benz | GLA | 3.8 Lakh |
| Mercedes-Benz | GLC | 5.3 Lakh |
| Mercedes-Benz | E-Class LWB | 6 Lakh |
| Mercedes-Benz | GLE | 8 Lakh |
| Mercedes-Benz | GLS | 10 Lakh |
| Mercedes-Benz | S-Class | 11 Lakh |
| Jeep | Compass | 2.16 Lakh |
| Jeep | Meridian | 2.47 Lakh |
| Jeep | Wrangler | 4.84 Lakh |
| Jeep | Grand Cherokee | 4.50 Lakh |
| Jaguar Land Rover | Range Rover | 4.6 – 30.4 Lakh |
| Jaguar Land Rover | Land Rover Defender | 7 – 18.6 Lakh |
| Jaguar Land Rover | Land Rover Discovery | 4.5 – 9.9 Lakh |
| Audi | A4 | 2.64 Lakh |
| Audi | A6 | 3.64 Lakh |
| Audi | Q3 | 3.7 Lakh |
| Audi | Q5 | 4.55 Lakh |
| Audi | Q7 | 6.15 Lakh |
| Audi | Q8 | 7.83 Lakh |
For Indian luxury car consumers, the GST 2.0 reforms represent a significant shift, as they make high-end German brands more accessible. After September 22, there is expected to be a spike in demand for luxury cars due to price reductions ranging from Rs 1.6 lakh to Rs 11 lakh.
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