GST 2.0 Impact: Mercedes-Benz, Skoda, Mahindra, and Toyota Announce Price Cuts in Response to New Tax Structure

Responding to the implementation of the new GST 2.0 framework, Mercedes-Benz India has announced price reductions across its vehicle range. The updated tax system, effective from September 22, 2025, standardizes the taxation of passenger cars under a 40% GST slab, replacing the previous model of 28% GST plus cess. This change results in lower prices for premium and luxury cars. Electric vehicles maintain their favorable tax position, supporting the government’s clean energy initiatives. Mercedes-Benz has committed to passing on the full tax benefits to its customers. Coinciding with the upcoming festive season, the price cuts are expected to boost sales. Skoda India is also offering attractive festive deals and benefits linked to GST. The Kodiaq offers savings up to Rs 5.8 lakh, Kushaq up to Rs 3.1 lakh, and Slavia up to Rs 1.8 lakh. Mahindra’s models also feature savings: Bolero/Bolero Neo Rs 1.27 lakh, XUV3XO Petrol Rs 1.40 lakh, XUV3XO Diesel Rs 1.56 lakh, Thar 2WD Diesel Rs 1.35 lakh, Thar 4WD Diesel Rs 1.01 lakh, Scorpio Classic Rs 1.01 lakh, Scorpio N Rs 1.45 lakh, Thar Roxx Rs 1.33 lakh, and XUV700 Rs 1.43 lakh. Toyota’s savings are also available on a range of models, with the Glanza up to Rs 85,300, Urban Cruiser Taisor up to Rs 1,11,100, Rumion up to Rs 48,700, Urban Cruiser Hyryder up to Rs 65,400, Innova Crysta up to Rs 1,80,600, Innova Hycross up to Rs 1,15,800, Fortuner up to Rs 3,49,000, Legender up to Rs 3,34,000, Hilux up to Rs 2,52,700, Camry up to Rs 1,01,800, and Vellfire up to Rs 2,78,000. Mercedes-Benz Price Drops: GLA 220d 4MATIC AMG Line sees a price reduction of Rs 3.8 lakh, GLC 300 4MATIC is down by Rs 5.3 lakh, GLE 450 4MATIC sees a decrease of Rs 8 lakh, GLS 450d AMG Line is reduced by Rs 10 lakh, A 200d (entry-level saloon) price is down by Rs 2.6 lakh, C 300 AMG Line is reduced by Rs 3.7 lakh, E-Class LWB 450 4MATIC price drops by Rs 6 lakh, and S 450 4MATIC (Flagship Sedan) sees an Rs 11 lakh decrease.