NEW DELHI, Jan 17: Luxury car makers Mercedes-Benz, Audi and Lamborghini expect the government to lower taxes on automobiles in the upcoming Budget, saying the premium segment of the auto industry has not been able to grow due to high taxation besides being hit hard by coronavirus.
Any hike in taxes on luxury cars will hit demand and prevent recovery from the disruptions witnessed last year, according to senior officials of the companies.
“Anything which is a deterrent to the demand in the sector we should stay away because at the end that will cause problem,” Mercedes-Benz India Managing Director & CEO Martin Schwenk told PTI.
Luxury car makers expect lower taxes on automobiles in upcoming budget
Any hike in taxes on luxury cars will hit demand and prevent recovery from the disruptions witnessed last year, according to senior officials of the companies
PTI | January 17, 2021 | Updated 13:00 IST
Luxury car makers Mercedes-Benz, Audi and Lamborghini expect the government to lower taxes on automobiles in the upcoming Budget, saying the premium segment of the auto industry has not been able to grow due to high taxation besides being hit hard by coronavirus.
Any hike in taxes on luxury cars will hit demand and prevent recovery from the disruptions witnessed last year, according to senior officials of the companies.
Luxury car makers seek reduction in taxes on automobiles in upcoming Budget
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Last Updated: Jan 17, 2021, 11:43 AM IST
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Synopsis Anything which is a deterrent to the demand in the sector we should stay away because at the end that will cause problem, Mercedes-Benz India Managing Director & CEO Martin Schwenk told PTI.
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At present, automobiles are taxed at 28 per cent GST with additional cess ranging from 1 per cent to 22 per cent depending on the type of vehicle.
Luxury car makers Mercedes-Benz, Audi and Lamborghini expect the government to lower taxes on automobiles in the upcoming Budget, saying the premium segment of the auto industry has not been able to grow due to high taxation besides being hit hard by coronavirus.
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German auto major Mercedes Benz on Wednesday reported a 43 percent decline in sales at 7,893 units in India in 2020, impacted by the coronavirus pandemic, which had led to the temporary shutdown of business but maintained its leadership position in the luxury car segment.
Mercedes-Benz India, which had sold 13,786 units in 2019, said its sales in the fourth quarter of 2020 grew 40 percent over the preceding quarter, continuing the strong sales recovery trend as India recovered from the COVID-19 induced disruptions.
To carry forward the momentum, the company has announced a Rs 400 crore investment last year on local manufacturing of products, plans to introduce 15 fresh products, including new models and facelifts of existing models, this year starting from the second quarter.
Mercedes Benz India posts 43 pc decline in sales at 7,893 units in 2020
Mercedes-Benz India, which had sold 13,786 units in 2019, said its sales in the fourth quarter of 2020 grew 40 per cent over the preceding quarter, continuing the strong sales recovery trend as India recovered from the COVID-19 induced disruptions.
German auto major Mercedes Benz on Wednesday reported 43 per cent decline in sales at 7,893 units in India in 2020, impacted by the coronavirus pandemic, which had led to the temporary shutdown of business but maintained its leadership position in the luxury car segment.
Mercedes-Benz India, which had sold 13,786 units in 2019, said its sales in the fourth quarter of 2020 grew 40 per cent over the preceding quarter, continuing the strong sales recovery trend as India recovered from the COVID-19 induced disruptions.