Mercedes India to hike prices from next month

The renowned luxury car manufacturing company, Mercedes has announced that with an objective of bringing down the production costs and to overcome the adverse effects in currency exchange rate the company plans to raise the prices of all its variants from May 1, 2011. Though it has not been decided yet as to how much increase will be made in the prices, but it is expected that Mercedes may announce the hike between 1.5 to 2 percent on all its models.

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Speaking on the situation Mr. Peter Honegg, Mercedes Benz India Managing Director and CEO, said that the prices of all Mercedes Benz models available in Indian car market will be raised from May 1, 2011.

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At present there are various Mercedes C Class, Mercedes E Class, Mercedes S Class and Super Luxury Mayback models with the price range between Rs. 25.47 lakh to Rs. 5.85 crore (ex-showroom price in Delhi) are sold in Indian market by the company.

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Mr. Honegg added that the decision of hike in the prices is taken due to increasing cost of production and the fluctuations in the exchange rates of currency which finally affects the final cost of production after it is finally launched in the market. He also said that the company has intensively undergone all the aspects and finally reached on the decision of increasing prices so that customers also bear the little share of increase in cost of production.

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However, the rival companies of Mercedes Benz like BMW and Audi when asked about increasing the prices of their models refused about any hike in prices on their models in the coming days.

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According to car industry sources the luxury car manufacturers who are importing completely knocked down (CKD) units and assembling them in India are facing the problem of increase in production cost since the government changed its import policy on CKD in the latest budget of 2011-2012.

Let us hope that the decision of hike in prices does not show an adverse effect on the sale of Mercedes Benz in Indian market.

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