Luxury Car Prices Rise Above Pre-GST Levels Even as Sales Soar
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Forbes India•05-10-2026, 18:34
Luxury Car Prices Rise Above Pre-GST Levels Even as Sales Soar
- •Mercedes-Benz India MD and CEO Santosh Iyer stated that luxury car prices are now 3 to 4 percent higher than pre-GST levels due to consecutive price hikes.
- •Despite rising prices, Mercedes-Benz India reported its best-ever July-September quarter with 5,422 vehicles sold, marking a 6 percent year-on-year increase.
- •The company has raised prices three times this year in January, April, and October to offset input costs and currency fluctuations.
- •Demand continues to outpace supply, leaving Mercedes with some of its lowest stock levels since the pandemic heading into the festive season.
- •About 80 percent of luxury cars are bought on finance, which cushions the impact of price hikes by adding only small amounts to monthly EMIs.
Key Questions Answered
Luxury car prices in India are currently 3 to 4 percent higher than they were prior to the GST cuts enacted in September 2025, whereas mass-market vehicle prices have remained below those previous thresholds.
Mercedes-Benz India retailed 5,422 vehicles during the July-September quarter, marking a 6 percent year-on-year increase and a 17 percent rise over the April-June period to achieve its best quarter ever in India.
The automaker has implemented regular price increases to offset mounting input costs and currency depreciation, specifically the weakening of the Indian rupee against the euro which impacts import-dependent luxury lineups.
