In the Turkish market, the Mercedes-Benz E-Class comes with a 1.5-litre engine. Yes, you read that correctly. The business sedan which is over 5-metres in length has a powertrain that produces only 249.4 Nm of torque. This figure is not only smaller than some family SUVs sold in the Indian market. In addition to this, the tiny engine is capable of producing 168 Bhp of power.
Small Engine, Big Tax
But why is the Mercedes-Benz E-Class sold with such a small engine. Well, if you guessed that this could be due to government restrictions and taxes, you are quite right. According to a media report, the government in Turkey applies OTV which is Special Consumption Tax. According to reports, in Turkey vehicles with engines over 1.6-litre engine are taxed more than 80% of the manufacturers price. Being under the 1.6-litre engine displacement cars attract 45% OTV on the manufacturers price. This also depends on the price of the vehicle. The car’s value should also be less than USD 5,600. Cars with value over USD 8,500 attract 80% OTV.
Mercedes-Benz in Turkey
Furthermore, reports also reveal that the Mercedes-Benz E-Class in the Turkish market could be priced as high as USD 137,000. This includes USD 63,400 equivalent base price, plus the OTV and VAT (Value Adeed Tax) which takes the price tag to USD 137,000. But if the car would have an engine with 2.0-litre displacement the OTV levied on the vehicle would be a whopping 220%. Due to this heavy tax regime, even the BMW 5-Series comes with a 1,600cc engine to fall under the 45% OTV bracket. Thanks to this, the brand offer the E180 in the Turkish market which features a hybrid engine setup and achieves a top-speed of 225 Kmph and a 0-100 Kmph in 8.9 seconds.
Will such tax enforcements arrive to the Indian market in the near future, to curb emission and pollution problems? We hope not.
Also Read: 2024 BMW 5-Series LWB revealed in India
