Prices of Mercedes-Benz, BMW, Audi, and JLR decline up to 10percent after GST tax
MUMBAI/DELHI,July3: Luxury cars have become a bit more affordable overnight post GST and Indians have the GST to thank for this windfall.
Prices of Mercedes-Benz, BMW, Audi, and JLR would decline up to 10% — or Rs 10 lakh for the fanciest of models — after the historic July 1 midnight adoption of the GST.
The luxury car market in 2016-17 saw sales of 35,000 vehicles. Market-leader Mercedes-Benz, BMW and Audi, after the announcement of GST rates in May, decided to pass on the benefits before July 1.
On Saturday, Tata Motors-owned Jaguar Land Rover was the first off the block to announce reduced prices in an aggressive advertising run. The benefits are available on models locally assembled. Roland Folger, MD at Mercedes-Benz, said he looks forward to the simplified tax structure creating a single market across India and benefiting the buyer and the seller.
“There may be teething issues but we are confident that there will be promising long-term gains. We are encouraged with the rising enquiries and increased footfall at our dealerships, and are confident of continuing with our positive growth momentum,” added Folger.
The GST may drive double-digit growth in the luxury-car market, two executives associated with the global carmakers said. Interestingly, the market posted its first ever decline in 2016 because of the ban on diesel vehicles in the National Capital Region, the introduction of infrastructure cess, and the demonetisation in November.
Despite the tough market, we grew by 6%. This year, we expect a double-digit growth.”
Apart from price reduction of 4-9% implemented on car prices, Audi India says there are some attractive offers already available from dealer to dealer.
Welcoming the new tax reforms, Rahil Ansari, head of Audi India says hopefully this will be a new and exciting phase for luxury car business in the country. “The new realigned prices offer great opportunity to expand the market and widen our customer base,’ adds Ansari.