After Maruti Suzuki and General Motors, Mercedes-Benz India has also indicated that prices of all its models will be revised upwards effective January, 2013.
DIVULGING REASONS behind the price hike decision, the company said in a statement that constant increase in input costs and unfavorable exchange rates coupled with inflation have posed severe strain on its margins.
“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,” said Eberhard Kern, Managing Director & CEO, Mercedes-Benz India.
Mercedes-Benz India carries an investment of Rs 850 crores in its production facility in Chakan, Pune apart from an investment of Rs. 480 crores made by its dealer partners in its network. Mercedes-Benz India currently boasts of the densest network amongst any luxury car makers in India with 72 touchpoints across 31 cities.
The company operates two shifts capable of producing 10,000 units annually and locally produces the C-Class, E-Class, S-Class sedans and started the local production of M-Class from October 2012. Mercedes-Benz India also started the operations of its technologically advanced Paint Shop from October, which has a capacity of 20,000 units per annum.