The GST cuts appear to have prompted luxury car Mercedes-Benz buyers, who had previously held back, to go ahead with their purchases, as reflected in the recent sales.

Mercedes-Benz has experienced an exceptional festive season, with Navratri sales that set a new record, with one new vehicle being sold every six minutes. This is an astonishing figure, given that the average price is approaching one crore. The German luxury car manufacturer sold 2,500 units during Navratri as a result of the government’s GST 2.0 increase. The total number of units sold during the second quarter of fiscal year 25-26 was a record-breaking 5119.

It appears that the GST reductions have resulted in luxury car purchasers who had previously refrained from making purchases proceeding with their purchases, as evidenced by the sales figures. Mercedes-Benz’s E-Class remains the most popular vehicle in India, and it has been experiencing an increase in sales since its recent update. The E-Class offers a savings of approximately Rs 4.5 lakh, while the E450, which is the range-topping model, is priced at Rs 91.6 lakh.

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During the second quarter of fiscal year 2026, the prestige sedan experienced its most significant year-over-year growth, with a rate of 47 percent. The current E-Class continues to be the most popular model in the prestige segment. The GLC, GLE, GLS, and G63 SUVs were also highly popular, with the latter achieving their highest sales. In numerous instances, these are the most expensive SUVs in India, with prices exceeding one crore. This serves as further evidence of the evolving demand for premium vehicles in India.

The GST reductions were implemented on the 22nd, which resulted in an increase in sales. This trend is expected to persist throughout the remainder of the festive season. Mercedes-Benz offers a wide selection of vehicles, including SUVs and sedans. However, its top-tier products are the most popular, with the E-Class outperforming other sedans.

It is evident that Mercedes-Benz vehicles with a higher price point are in greater demand, as consumers prioritize value over outright price.