Mercedes-Benz India CEO Urges Customs Duty Cut on Luxury Cars, More Road Funding

• Santosh Iyer, MD & CEO of Mercedes-Benz India, advocates for rationalizing customs duty on imported luxury cars to boost demand and government tax revenue.
• Currently, imported passenger vehicles face 70% duty for those under $40,000 and 110% for those above, with Iyer suggesting a single, lower slab.
• He argues that luxury cars, making up only 5-8% of their sales, do not impact the mass market and a duty cut would benefit the industry and tax collection.
• Iyer also calls for better financial management to curb rupee depreciation, which has forced price increases and impacted demand.
• Increased capital expenditure for road infrastructure is also requested, as improved roads enhance demand for luxury vehicles and benefit the economy.

Why It Matters: Mercedes-Benz India CEO seeks lower customs duty on luxury cars and increased road infrastructure spending in Budget 2026.