Mercedes Benz announces huge price hike of up to 4% on all cars in India
The retail finance rates will also be affected.
Mercedes-Benz India has announced that it will revise the prices of its entire model range by up to 4% starting from next month. The increase is due to rising input costs and of course, the depreciation of Indian rupee against Euro.
Speaking about the price raise, the German luxury car manufacturer said the raising inflation due to geo political dynamics combined with increasing input costs and raising forex rates exert significant pressure on its overall operations. It’s to be noted that rupee has lost over 5% against Euro in the last eight months while the repo rate has also raised by 0.5% in the last two months.
The company also stated that in addition to the price of its Indian portfolio, the retail finance rates will also be affected by these factors. The price hike will take effect from 1st of September. Tata Motors, Honda Cars India, Maruti and Mahindra & Mahindra too have announced price hike from this month to combat the unfavorable factors.
Mercedes has been having an eventful year in India with numerous launches (of both new and refreshed models) so far. It also surpassed an important milestone of rolling out 100,000th car (an E-Class) from India. Mercedes India ended 2017 with sales of 15,300 units which is 16% better than its performance in 2016, thereby claiming the top spot in the country’s luxury car segment.
The company’s impressive sales performance in India is not likely to be affected much by the price hike. Mercedes looks poised to continue its stellar run this year as well. They offer a varied range of cars, starting from the A Class (Rs 27.3 lakhs) to the S Class Cabriolet (Rs 2.31 cr).
The company is on track to introduce few more models before the end of this year. In 2019, the next generation A Class and A Class Sedan (replacement for CLA) are scheduled to be launched in India to take care of the sales volumes.