Luxury car cos seek tax reduction

Luxury car makers MercedesBenz, 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," MercedesBenz India Managing Director & CEO Martin Schwenk said.