Luxury car buyers may get 5-8% price benefit: Mercedes-Benz India MD & CEO

Mercedes-Benz India MD & CEO Santosh Iyer says GST rationalisation will boost festive sales, with buyers set to gain 5-8% price benefit

Santosh Iyer, CEO and MD of Mercedes-Benz India, told Sohini Das in a telephone interview that the tax rationalisation will boost consumer sentiment and luxury car buyers may get an estimated price benefit of 5-8%. Edited excerpts:

 

By how much do you think prices of luxury cars will come down?

 

Santosh: Mercedes-Benz will be passing this entire GST reduction to our customers and the estimated price benefit will be in the 5-8% corridor, lifting customer sentiment, boosting festive sales. Even the rationalisation of GST on automotive parts should bring down the TCO in the long run.

 

Is this offsetting the pressure due to rupee depreciation? 

 

Santosh: We have decoupled both the topics. Currently, we are expecting the Rupee to bounce back to earlier levels. If it continues at current level or deteriorates even further, then we will be forced to take further price increases. We expect this restructuring as a long-term measure to create a robust economy with higher consumption and spending leading to more job creation.  

 

Does this change outlook for 2025?

 

Santosh: We expect the 2025 festive (season) to be the best-ever in recent past. However, the overall year may still end up in flattish or single digit growth, as August also saw a decline due to GST reduction expectations.