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Mercedes-Benz India plans to hike vehicle prices from Jan
SME News, Tuesday, Dec 11, 2012 17:23:57 PM IST
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NEW DELHI: German car major Mercedes-Benz is planning to offset cost escalations by increasing the prices of its vehicles in India from January.
“A constant increase in input costs and unfavourable exchange rates coupled with inflation has posed a severe strain on margins,” Mercedes-Benz India said in a statement.
However, the company did not specify the quantum of the proposed price hike.
Mercedes-Benz India Managing Director & CEO Eberhard Kern said, “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.”
Till now, a significant level of cost escalations have been absorbed by the company. But, beyond a point it could continue to sustain such levels.
Mercedes-Benz India sells a range of luxury vehicles, including the B Class, C-Class, E-Class, S-Class, M-Class and the GL class with prices starting at Rs 21.9 lakh and going up to Rs 1.07 crore (ex-showroom Delhi).
Audi, a major competitor in the segment, has announced similar plans to increase prices from January, while other car makers such as Maruti Suzuki India, Toyota Kirloskar Motor and General Motor India are also planning to follow suit.
Likewise, Honda Cars India, Volkswagen and Nissan are also considering such a move.
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