Mercedes-Benz raises car prices, others likely to follow

The season of price hike announcements to propel sales in the fag year end has started with the German luxury carmaker Mercedes-Benz India planning to raise ex-showroom prices of its entire model range by up to 2 per cent range from January 2016.

Mercedes attributed the increase to rising input costs on many new models and likewise other players are also expected undertake a similar exercise soon. Passenger car companies announce price hikes applicable in the new year in December to prompt customers to advance their purchase decisions. 

The customers get an opportunity to buy new cars at lower prices, while this helps companies to liquidate their year-end stock and minimize their inventory. Most of the companies blame the input prices like Roland Folger, MD & CEO, Mercedes-Benz India also said, "We have enhanced the value preposition of our products with continuous localisation efforts. However, with rising input costs, we are compelled to make some price adjustments to our product range to protect the investment of our customers in the brand, maintain our premium brand positioning in the market and sustain a profitable business."

Mercedes-Benz India started selling cars in India in 1994 and has invested over Rs 1,000 crore at its Pune plant and with 20,000 units annually has the largest installed production capacity for any luxury car maker in the country.

It currently assembles the Mercedes Maybach S 500, S-Class, E-Class, C-Class, CLA sedans and the GLA, GLE and the GL-Class SUVs. The company has registered a stellar 34 per cent year-on-year growth by selling 10,079 units in the Jan-Sep 2015 period and aims to close the year with record sales of over 14,000 units.