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GST Cuts Have Spurred The Indian Car Buyers To Splurge On Even Luxury Cars Like Mercedes-Benz
Somnath Chatterjee | October 13, 2025 2:41 PM CST

Mercedes-Benz has had a bumper festive season with record Navratri sales where it sold a new car every six minutes! With an average price nudging a crore, that is a staggering number. The German luxury carmaker sold 2,500 units during Navratri on the back of GST 2.0 boost by the Government. Total Q2 FY 25-26 sales were a record 5119 units.

The GST cuts it seems have meant that luxury car buyers who held back on purchases went ahead with the sales reflecting this. The best selling car for Mercedes-Benz in India continues to be the E-Class which post its update has been selling more. There are savings for about Rs 4.5 lakh on the E-Class while the range topping E450 has a price of Rs 91.6 lakh.


The luxury sedan has achieved its highest ever growth at 47percent y-o-y, during Q2 FY 25-26. The current E-Class remains the best seller in the luxury space. Other popular cars were the GLC, GLE, GLS and G63 SUVs which achieved their best selling sales. These are the top-end SUVs costing more than a crore in many cases which further shows the changing appetite for luxury cars in India.

The GST cuts came into effect from 22nd which increased the sales and that sentiment will continue into the remaining festive season. Mercedes-Benz has a vast product range from SUVs to sedans but its top-tier products are the ones which are selling more with the E-Class being more successful over other sedans. It is clear that Mercedes-Benz cars with a higher pricing has more demand as buyers seek value rather than outright price. 


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