Mercedes-Benz India to increase car prices from Oct 2020

Mercedes Benz India has registered huge sales decline this fiscal due to Covid-19

Weakening of Indian currency against euro in 2020, and a sharp increase in input costs has impacted overall operations at Mercedes Benz India. The situation has created significant pressure on the bottom line. To counter, Mercedes-Benz India has announced a price hike (ex-sh price) of its select model range with effect from first week of October 2020. Price correction would be up to a range of 2 percent, varying across a select product range.

Updates

Mercedes-Benz has introduced new tech and features like ‘Mercedes Me connect’ across its product portfolio. A combination of all these factors warrants a price revision across its select model range to offset these costs and drive a sustainable business. The company states that the price hike is nominal yet a necessary price adjustment and inevitable. The brand will be absorbing most of the impact.

Martin Schwenk, Managing Director & CEO, Mercedes-Benz India said, “It remains our endeavour to offer the latest products, best of technologies, service offering and ownership experience to our customers.” Mercedes EQC electric car is scheduled for launch in the days to come. The launch is a departure from what the brand traditionally offers considering the focus this time around is all electric.

Sales

Mercedes-Benz India has for long consistently lead the luxury car sales chart. It continues to do so even in the current day when luxury car sales across manufacturers has contracted under the shadow of Covid-19 pandemic. With recovery expected, the luxury car market is still many moons away from a pre-Covid market recovery. The ongoing festive season is expected to infuse some cheer into an otherwise low activity space at present, and with that improve Q3 2020 performance.

2020 Q1 and Q2 sales amounted to 2,948 units, down from 6,661 units sold in the same 6 months in 2019. Data from dealers represented by FADA puts retails sales for July 2020 at 418 units, and retail sales for August 2020 at 461 units. Market slowdown has impacted launch plans across the industry. Despite industry wide difficulties, in recent weeks Mercedes-Benz India has announced a few new launches including GLE 450 petrol variant, and 2020 GLS.

Finance & Service Packages

The automaker offers specially curated financial programmes like Wish Box 2.0 and other service packages for customer convenience, and to be able to enjoy the vehicle ownership associated with Mercedes. A range of offers focuses on financial adaptability with flexible EMI plans, trade-ins, buy backs, and varying loan duration to ensure customers are able to pick an option that’s most suitable to them.

To ensure optimum cost of ownership experience, the brand has curated tailor-made EMI solutions. This is possible through a long-term loan plans, no EMI for first three months, and buy back options. EMI flexibility has also been introduced through plans that permit paying a lower EMI for the first 6 months before scaling up to regular loan repayment.