Mercedes-Benz India announced that it will be revising the price of its entire model range effective from March 15, 2016. The price increase would range between 3% and 5% depending on the model. The imposition of an ‘infrastructural cess’ as well as an additional ‘luxury tax’ announced in the Union Budget 2016, has negatively impacted the prices of the Mercedes-Benz model range. In addition, a weakening currency coupled with rising input costs has been exerting significant pressure to the bottom-line. The combination of all these factors led Mercedes-Benz India to upwardly revise the prices of the entire model range.
Roland Folger, Managing Director & CEO, Mercedes-Benz India said that contrary to the company’s expectation of some relief in terms of rationalization of duties, the introduction of additional duties and taxes in this year’s Union Budget has adversely affected the German car maker’s pricing. On top, the steady rise of input costs against the backdrop of a weakening Indian currency has further eroded the bottom-line. Mercedes-Benz India has thus decided to make some necessary price adjustments to its product range.
Folger further added that Mercedes-Benz India is on a positive growth curve and the company has a clear focus on maintaining a sustainable business in this dynamic market. Mercedes-Benz India was expecting some rationalization of the duty structure in the Union Budget, which could have benefited both the luxury car industry and the end customer in multiple ways. On the contrary, the car maker is faced with a new challenge of addressing additional taxation.
However, despite this price revision, Folger adds, the company’s financial offerings like STAR Agility, STAR Finance, STAR Lease and Corporate STAR Lease are specially designed for customers to drive home their dream Mercedes. These unique solutions provides value proposition, enabling a hassle free purchase.