Mercedes-Benz launches AMG centre in Chennai, awaits clarity on cess

Such a move would upset the plans of the German car maker, which has maintained its pole position in the luxury car market. Some of its record performances this year include selling 7,171 units during the January to June period and also reporting a sales figure of 3,521 units for the April to June quarter.

Though the final levy has still not been decided, Mercedes Benz India MD Roland Folger lamented about the pending issue, stating that this would mean going back to “square one” to charging the pre-GST rates. 

Under the GST regime, large cars with engine capacity of over 1,500 cc and SUVs with length of more than four metre and engine greater than 1,500 cc attracts 15 per cent cess in addition to the top tax rate of 28 per cent.

The overall tax incidence on locally-assembled luxury cars had come down from around 55 per cent earlier to 43 per cent in the GST regime. Last month, Folger had sought lower taxes on luxury cars in India, saying the move would help in job creation as well as increase in tax collection from the segment. 

“We have seen in India that if on the one hand something is given, then on the other hand, something is taken back,” Folger had said. The company has sent a note to the authorities, expressing concerns on cess, he said, after launching the city’s first and India’s seventh AMG Performance Centre at Trans Car India here on Tuesday. 

Folger also said, “with the recent launch of the AMG GT R and the GT Roadster, Mercedes-AMG now has expanded its performance car portfolio in India to 12 products and leads the segment by holding a significant market share. The AMG Performance Centre in Chennai will serve as a right place for performance car enthusiasts to experience and discover their much-aspired AMG model, concept and accessories for an unparalleled driving and ownership experience. The inauguration of an APC in Chennai also underlines the importance of Chennai market, which has been a key market for both MercedesBenz and AMG products.”