Mercedes Benz India, the third largest luxury car maker in the country, has revealed that they will be increasing prices of all their cars from January 2013. The reason behind this, according to Mercedes Benz India, is, “A constant increase in input costs and unfavorable exchange rates coupled with inflation has posed severe strain on margins.”
BMW and Audi, the two main rivals of Mercedes Benz in India have already announced that they will be increasing prices of their respective models from Jan 2013. Audi has revealed that they will be increasing their car prices by 5%, while BMW and Mercedes Benz are yet to reveal the exact increase in price of their luxury cars.
Mr. Eberhard Kern, Managing Director & CEO, Mercedes-Benz India commented, “Significant level of cost escalations have been absorbed by us till now, but beyond a point we cannot continue to sustain such levels. We have made substantial investment in our India operations and are responsible for the growth of our employees and dealer partners. We aim for a sustainable profitable growth maintaining our premium appeal and hence, we are going to substantially increase the prices of all Mercedes-Benz cars from January 2013.”