India's luxury car market has just received a major boost with the rollout of GST 2.0. The rationalisation of tax rates has lowered the levy on internal combustion-engine (ICE) vehicles to a uniform 40%, putting luxury models on par with mid-sized mass-market cars above 4 metres. As the new regime takes effect on September 22, 2025, luxury automakers have announced sweeping price cuts across their portfolios.
German giants lead the charge
Audi India was among the first to announce its revised pricing. The Audi Q8 SUV will see the steepest drop of Rs 7.8 lakh, while the Q3 compact SUV will now be Rs 3.07 lakh cheaper. The A6 sedan also gets a price trim of Rs 3.64 lakh.
"Benefits ranging from Rs 2.6 lakh to over Rs 7.8 lakh depending on the model will make Audi's range more accessible, especially ahead of the festive season," the company said.
Jaguar Land Rover followed suit with aggressive cuts. Range Rover models will now be cheaper by Rs 4.6 lakh to Rs 30.4 lakh, the Defender by Rs 7 lakh to Rs 18.6 lakh, and the Discovery lineup by Rs 4.5 lakh to Rs 9.9 lakh.
Mercedes-Benz, India's top-selling luxury brand, rolled out reductions across its flagship models. The S-Class 4MATIC is now Rs 11 lakh cheaper, priced at Rs 1.88 crore (ex-showroom). The GLS 450d AMG Line has seen a Rs 10 lakh cut, while the GLE 450 4MATIC is cheaper by Rs 8 lakh. The popular E-Class Long Wheelbase has dropped by Rs 6 lakh.
BMW, too, slashed prices, with its flagship X7 SUV now priced atRs ₹1.25 crore after an Rs 8.9 lakh cut. Entry-level models like the X1 SUV and 3 Series LWB sedan are now more affordable by Rs 1.8 lakh and ₹3.4 lakh, respectively.
Lexus joins with record cuts
Japanese luxury carmaker Lexus India has announced some of the biggest price drops, with reductions of up to Rs 20.8 lakh. The LX 500d SUV alone has seen the largest cut in the segment. The ES 300h sedan, NX 350h SUV, and RX range have all become more affordable, with cuts between Rs 1.47 lakh and Rs 2.58 lakh.
Hikaru Ikeuchi, President of Lexus India, said the move reflects the brand's philosophy of Omotenashi, or customer-first experiences. "This initiative enhances accessibility and instils greater confidence in luxury mobility, especially during the festive season," he noted.
