India’s largest luxury carmaker Mercedes-Benz India has announced an upward revision of the price of its entire model range effective from September 1, 2018. The price correction would be up to the range of a moderate 4% varying across the model range. The rising inflation due to geo-political dynamics, coupled with rising input costs and increasing forex rates has been exerting significant pressure on overall operations. While the INR has depreciated by more than 5% against the Euro in last 8 months, the Repo rate has gone up by 0.5% in the last couple of months. The combination of all these factors led Mercedes-Benz India to upwardly revise the prices of its entire model range and also the retail finance rates.
Roland Folger, Managing Director & CEO, Mercedes-Benz India commented, “A steady rise in input costs against the backdrop of an unfavorable forex rate and high inflationary cost together, have had a significant impact in the recent past. We have been watching this trend cautiously and avoided any price changes in the recent past. Considering the rapid depreciation of the rupee against the major currencies in last few days, we were left with fewer options, but to make some necessary price adjustments to our product range at the moment.”
Maruti Suzuki India has also hiked its vehicle prices by up to Rs 61,000. Mercedes-Benz Hikes Its Vehicle Prices in India By up to 4%
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