From Mercedes to BMW, luxury cars forced into slow lane as cess increases

Luxury carmakers clock high growth after GST led price cut in July

Luxury car sales — zooming since the roll-out of the goods and services tax (GST) in July — have hit a speed breaker now: Higher cess.

Under the GST, taxes — and consequently, prices — of luxury cars had fallen. Leading brands such as Mercedes and BMW had clocked high double-digit growth in the quarter (July-September) — also the best for some of them.

However, since September, when cess on luxury cars was raised, prices have gone up and demand down.

“Prices are back at pre-GST levels; it has affected our October sales. From November, sales are back to our