Mercedes Benz India has today indicated that prices of all its Indian line up of cars will be revised upwards effective January, 2013. The price increase is owing to a constant increase in input costs and unfavorable exchange rates coupled with inflation.
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.”
Mercedes Benz India hasn’t spoken anything about the magnitude of price hike.
It may be noted that Mercedes Benz India currently ranks third, behind BMW and Audi, in Indian luxury car market and it remains to be seen if the price hike would have a negative effect on the car maker’s sales.