
Mercedes-Benz India has announced that it will be increasing the prices of its vehicles across different models ranging between Rs 2 lakh to Rs 12 lakh from April 1, 2023. The luxury carmaker cited rising input costs and the adverse impact of foreign exchange as the reason for the price hike, which will be the second one in three months.
According to the company, the ex-showroom price of its range of cars will increase by up to 5 per cent from April 1, 2023. Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, stated that the Euro has been appreciating against the Rupee in the past few months, and the Rupee has depreciated against it. As a result, the company has been under significant pressure, and if they do not take a proactive step, it will deteriorate its overall business model in India.
The A-Class limousine will see a price increase of Rs 2 lakh, while the GLA SUV will increase by Rs 7 lakh for the top-end S 350d limousine. The top-end Mercedes Maybach S 580 will see an increase in price by Rs 12 lakh. The company had already increased prices in January 2023 by up to 5 per cent.
Mercedes-Benz India stated that apart from the Rupee depreciation compared to the Euro, there has been an increase in input costs, including logistics, which have been exerting significant pressure on the company's overall operational cost. To lessen the impact of the price hike on customers, the company has taken steps through its financing solutions.
Iyer said that around 80 per cent of the cars sold are on finance, and they have come up with certain agility products now, with the residual value of the product guaranteed. The EMI impact will not be more than Rs 2,000 to Rs 3,000. When asked if the price hike could dampen demand, Iyer said that price increases could have an effect on demand, but they still feel cautiously optimistic about a double-digit growth forecast for the year.
In 2022, Mercedes-Benz India posted its best-ever sales at 15,822 units, as compared to 11,242 units in 2021, with a growth of 41 per cent.
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