Rising input costs and currency depreciation prompt Mercedes-Benz India to increase prices – Response to economic factors
Mercedes-Benz India has announced an ex-showroom price increase of up to 5 percent on its model range, wef April 1, 2023. This is based on identifying various known factors affecting the automobile industry in India. And necessitates price correction to offset increasing costs.
Mercedes-Benz India to pass on some costs to customers in ex-showroom price increase
Costs incurred due to various factors like weakening of the currency, increasing input costs, rising logistics costs, pressure on/ increased operational cost, sharp increase in forex since 4 months, and depreciation of currency. Price hike ranges from Rs 2 lakh for the entry A-Class/GLA Class to Rs 12 lakh for top-end Mercedes Maybach S580.
Price adjustments are crucial to sustain profitable business operations across the platform. And helps facing challenges posed due to aforementioned factors. According to the company, some cost is being passed on to the consumers, while Mercedes-Benz absorbs a significant portion of these costs.
Price corrections are a common practice in the automobile industry. Such decisions are made after careful consideration, keeping in mind the current market conditions. And relay the company’s commitment to providing a world-class product and experience to its customers.
Smart financial solutions ensures optimum cost of ownership experience
The manufacturer is committed to providing its customers with a smart financial solution, ensuring an optimum cost of ownership experience. Mercedes-Benz Financial Services is one such avenue that provides tailor-made finance options and insurance solutions to customers. This ensures a hassle-free buying experience for the customer and helps them make an informed decision.
Ex-showroom price increase will vary depending on the model, with prices increasing by Rs 2 lakhs for A-Class limousine and GLA SUV at Rs 44 lakhs and Rs 48.50 lakhs, respectively. S 350d limousine top end will see an increase of Rs 7 lakhs, bringing the price to 1 cr 80 lakhs, while Mercedes Maybach S 580 luxury limousine top end will see an increase of Rs 12 lakhs, bringing the price to 2 cr 69 lakhs. All prices ex-sh.
Ex-showroom price increase to help sustain profitable business operations
It is essential to note that such price corrections are common in the automobile industry in response to economic factors. Companies often adjust prices in response to economic factors. This may even extend to multiple times in any given year. Given they are a constant, auto manufacturers continually analyse and evaluate the situation and come up with an appropriate solution.
Santosh Iyer, Managing Director & CEO, Mercedes-Benz India said, “Mercedes-Benz offers the latest model line-up featuring next-gen technology, connected services, luxury appointments and a differentiating customer service. The continuous weakening of the currency combined with increasing input costs have resulted in increased operational cost, necessitating a price adjustment.”
