Mercedes-Benz India To Increase Car Prices By 2%, From October 2020

Mercedes-Benz India says that the weakening of the Indian rupee, combined with an increase in input costs have been exerting significant pressure on the overall operations, thus leading to a price hike.

Highlights

• Mercedes-Benz's select model range will increase by up to 2%
• Weakening of Rupee & increased rise in input costs has led to the hike
• The new prices will come into effect from the first week of October 2020

Mercedes-Benz India will be increasing the prices of select models in India from October 2020. While the company hasn't mentioned which models, it has mentioned that there will be an upward revision of 2 per cent, and the new prices will come into effect from the first week of October. Stating the reasons for the price hike, Mercedes-Benz India said that the weakening of the Indian rupee compared to the euro since the past six to seven months, combined with an increase in input costs have been exerting significant pressure on the overall operations. Furthermore, the carmaker says that the introduction of new technologies and features like 'Mercedes Me connect' across its product portfolio also led to the price revision.

Commenting on the latest development, Martin Schwenk, Managing Director & CEO, Mercedes-Benz India said, "The weakening of the currency since the beginning of the year, combined with a sharp increase in the input costs have been a matter of concern, creating significant pressure on our bottom line. To offset these costs and drive a sustainable business, we have few options but to make some nominal yet necessary price adjustments. We as a customer-centric brand will be absorbing most of the impact, however passing on a portion of it up to 2 per cent, seems inevitable."

The carmaker claims that despite the price vision, customers, who are planning to by a Mercedes-Benz vehicle, can still benefit from its new finance options introduced as part of the Wish Box 2.0 programme. Aiming to revive the buying sentiment during the festive season, the company introduced a range of new easy EMI options. Under the new sales campaign, the C-Class sedan will be offered at a monthly EMI starting at ₹ 39,999, the E-Class sedan will be offered at a starting EMI of ₹ 49,999 and the GLC SUV will be offered at a starting EMI of ₹ 44,444. All the three models will also be offered at a rate of interest (ROI) 7.99 per cent and will come with the complimentary insurance scheme for the first year.

Before this, Mercedes-Benz India has increase car prices in India back in January 2020 and back then, the company had said that the price hike was aimed at offsetting the increase in various input and commodity costs.