Mercedes‑Benz has benefited from the revised GST rates and festive demand in India.
What
The company reported a record-breaking sales surge during the Navratri festival, moving one new car every six minutes. The brand sold over 2,500 units in just nine days. This translated to a growth of 36% compared to September 2024, marking their best-ever performance in India.
"The GST 2.0 reforms is reflected in the Navratri Sales, which witnessed 2500 units retailed in the nine days of the festival, making it the highest ever Navratri sales for Mercedes-Benz in India," the company said in a press release.
According to CEO Santosh Iyer, the demand surge started after the GST 2.0 auto rate corrections came into effect on September 22, the first day of Navratri. This, combined with special offers rolled out during the quarter, resulted in an unprecedented daily sales record of over 270 cars.
"Mercedes-Benz clocked its best-ever September sales owing to an overwhelming customer response following the GST 2.0 reforms, culminating the pent-up demand. We expect this festive buying spirit to continue in October as well, with upcoming festivities including Dhanteras and Diwali, which traditionally witness spirited buying from customers," said Santosh Iyer, Managing Director & CEO, Mercedes-Benz India according to a report in Startupro.
“The reduction in the GST rates has certainly improved customer sentiment with its appropriate timing; as car prices are increasing owing to macro-economic challenges like adverse forex movement, rising operational cost," he added.
The Rise In Sales
Mercedes-Benz India reported a 4% year-on-year increase in sales, with 9,357 units sold in the first six months of 2025. The company expects strong sales during the Diwali season, supported by an order bank of approximately 2,000 units.
For context, the 56th GST Council's “GST 2.0” reforms came into effect on September 22, 2025. Earlier, luxury cars had a 28% GST plus a compensation cess of up to 22%, which meant taxes could go as high as 50%.
Now, there is a flat 40% GST and no compensation cess for big cars and SUVs. This has led to some big price cuts – up to ₹25 lakh on cars like the Mercedes-AMG G 63 and Rs 8–10 lakh on SUVs such as the BMW X7 and Mercedes GLS.