THERE ARE early indications of a price war in the executive- car segment, as manufacturers revise prices down, even on models where the new emissions-based tax rate is actually increasing from July 1st.
BMW, the first to publish its new prices in what has become a game of price poker by the executive brands, recorded reductions in several of its diesel models in the 3-Series and 5-Series ranges, with over €10,000 off one 3-Series model and a €9,000 drop on some 5-Series diesels.
Audi and Lexus released their prices more recently: the former's A4 2.0-litre TDI diesel fell by €6,700, with €7,070 off the pre-July price for the A6 3.0-litre TDI.
Audi also cut the price of its Multitronic versions by €4,840, even though the Vehicle Registration Tax (VRT) on these variants rose from 30 per cent to 32 per cent. The same was true for the 2.7-litre TDi, which, despite a ranking in the highest CO2 band, was reduced by €2,890.
However, it is Mercedes-Benz which has really shaken the segment with its price changes.
In the C-Class range, virtually every variant records a price reduction from July 1st, even in cases where the VRT rate increases. As expected, there are large reductions in the marque's diesels, especially the C200 CDi, which in some versions falls by over €10,000.
Mercedes-Benz's mid-sized E-Class range has some of the most dramatic price reductions, with up to €16,374 off the E220 CDi diesel.
There are similar reductions on the E280 CDi and E320 CDi.