From April 1, the previous price of the company’s model range in the showroom will increase by 5 percent. (File)
New Delhi:
Indian luxury carmaker Mercedes-Benz on Thursday said it will hike the prices of its vehicles by Rs 2 lakh to Rs 12 lakh across models from April 1 to offset rising input costs, particularly adverse foreign exchange impact.
This company has raised the price of its cars for the second time in the last three months.
From April 1, 2023, the prices of the company’s model range in the showroom will increase by up to 5 percent, the company announced.
Mercedes-Benz India Managing Director and CEO Santosh Iyer told PTI that the company is tracking the euro and the rupee has depreciated against it in the past few months.
“In October, it (euro) was around 78-79 (to the rupee), and now it has reached 87. This is really pressing and if we don’t take this proactive step now, it will worsen our overall business model in India. ,” he said.
As a result, from April, the price of the company’s A-Class limousines will go up by Rs 2 lakh and GLA SUVs by Rs 7 lakh for the top-of-the-line S 350d limousines, while the price of the top-of-the-line Mercedes Maybach S 580 will drop. the price increased by 12 million tenge.
This will be the second price increase this year, after the company raised prices by 5 percent in January.
Apart from the rupee’s depreciation against the euro, there has also been an increase in initial costs, including logistics, which have put significant pressure on the company’s overall operating cost, Mercedes-Benz India said.
To mitigate the impact of the price hike on customers, Iyer said Mercedes-Benz India has taken steps through its financing solutions.
“Around 80 per cent of the vehicles sold are on finance… So, we have now come up with agility products that are guaranteed on the residual value of the product and have an EMI impact of less than Rs 2,000. 3 thousand,” he added.
Asked if price hikes could dampen demand, he said: “Obviously, price hikes tend to affect demand, but we feel very good at the start of the first quarter, we’re still cautiously optimistic in the double digits.” growth forecast for the year.” If there are any impacts on demand, Iyer said, “We think they should be mitigated through the financing programs that we offer.” In 2022, Mercedes-Benz India posted its best ever sales of 15,822 units, up 41 percent from 11,242 units in 2021.
(Except for the title, this story was not edited by NDTV staff and was published on a syndicated channel.)
Featured image of the day
Worst week for markets in more than 6 months
