Mercedes-Benz India Seeks Duty Reform for Luxury Car Imports

Business Industry

Posted by AI on 2026-01-18 06:27:09 | Last Updated by AI on 2026-06-27 15:29:53

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The luxury car market in India is gearing up for a potential boost as Mercedes-Benz India MD and CEO, Santosh Iyer, advocates for a rationalised customs duty structure. In a recent statement, Iyer highlighted the current duty system's impact on the premium car segment, suggesting a simplified approach could benefit both the industry and the government.

Iyer's proposal focuses on the relatively small percentage of cars facing customs and import duties, which stands at a mere 5-8% of their total sales in India. He believes that by rationalising and reducing these duties, the government can encourage growth in the luxury car segment. This move could potentially increase tax revenue and provide Indian consumers with access to a wider range of high-end vehicles.

The current duty structure for imported luxury cars is complex, with multiple slabs and varying rates. Iyer's suggestion to streamline this system into a single slab could make the process more transparent and appealing to foreign automakers. A simplified duty structure may also encourage Mercedes-Benz and other luxury brands to bring more models to the Indian market, offering consumers a broader choice.

As the Indian government continues to focus on attracting foreign investment and promoting the 'Make in India' initiative, Iyer's proposal presents an opportunity to foster growth in the luxury car segment while potentially increasing revenue through a more efficient duty system. With the industry's support, this reform could be a win-win for both the government and luxury car enthusiasts in India, ultimately driving the market towards a more prosperous future.

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