German luxury auto major Mercedes-Benz, which is the most selling luxury car brand in India, has announced that the company will be increasing the prices of its products by up to 4 percent across its Indian lineup. Mercedes-Benz India has taken the decision to hike the price of all its car models on sale in the country due to the increasing input costs, rising inflation and the weak rupee, which has hit its all-time low at Rs. 70 per US dollar. The price increase of the Mercedes-Benz cars in India will come into effect from 1st September, 2018. On top of these, a rise of 0.5 percent in the repo rate has also resulted in the increased interest rates for Mercedes-Benz’s financial services as well.
Mercedes-Benz India has stated in an official press release that the company’s entire product portfolio’s prices will be increased by up to 4% that will come into effect from 1st of September, 2018.
Mercedes-Benz also stated that the company has been compelled to take this decision of price revision in India due to a combination of factors which includes rising input costs, increasing inflation and an the increasing foreign exchange rates, all of which have been constantly exerting rising pressure on the company’s operations in India.
The German luxury auto major has said that the Smart financial solutions from Mercedes-Benz Financial Services will help in offering an optimum cost of ownership experience for the Indian customers.
While the INR has depreciated by over 5 percent against the Euro in the last 8 months, the Repo rate has also gone up by 0.5 percent over the last few months. The amalgamation of all these factors along with rising input costs have led Mercedes-Benz India to increase the prices of its entire product range, while also revising the retail finance rates.
While commenting on this matter the Managing Director and Chief Executive Officer of Mercedes-Benz India, Roland Folger said that as the leading luxury car maker in India, the company has been persistently working on providing the best of models and industry benchmark customer service as well as ownership experience. This philosophy has led the company to maintain its steady price positioning in the last few months. Nevertheless, a steady increase in input costs along with an unfavorable forex rate coupled with high inflations cost have had a considerable impact lately. Mercedes-Benz has been witnessing all these changes cautiously and consistently endeavored to avoid any price increase all this while. Keeping in mind all these changing factors along with the recent rapid depreciation of the rupee against the major global currencies, the company is now left with no other options, but to make the necessary price revisions to its product portfolio.
Folger added by saying that despite this moderate price revision, the novel and customized financial services from Mercedes-Benz such as the STAR Finance, STAR Agility, Corporate STAR Lease, STAR Lease and the likes have been specifically designed for the company’s discerning customers to enable them own their dream Mercedes model. Moreover, the Mercedes service programmes such as the STAR Care, STAR Care Plus, STAR Ease and the On Road Assistance services make the overall ownership experience even better.