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    Mercedes-Benz India to revise prices of its entire model range up to four per cent

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    Fleme Varkey

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    Mercedes-Benz India to revise prices of its entire model range up to four per cent

    Luxury carmaker Mercedes-Benz has announced that it will be increasing the price of its cars from January 22 onwards. The rise in price is mainly due to the end of the excise duty cut that was available previously. 

    The company will be employing a four per cent hike in prices across its range.  Mr. Eberhard Kern, Managing Director & CEO, Mercedes-Benz India commented, “Mercedes-Benz India offers the ‘Top of Pyramid’ products for its discerning customers, creating more value to the total cost of ownership. The excise duty cut was of much relief to the automotive sector in general and luxury cars, in particular. However, the end of excise benefit left us with no option but to pass on the additional cost to our customers. Mercedes-Benz India is on a strong growth curve with a clear focus on maintaining a profitable and sustainable growth. We want to maintain our premium brand positioning in the market and sustain the strong foundation which we have created for the brand in India.”  Mercedes, however, is also looking to make this transition easier for the customers as well.  It aims to do so with the help of Smart financial solutions from Mercedes-Benz Financial Services  and other  finance and service programmes.

    This move of no reduction in the excise duty has led rise to talk of the start of 2015 being a pretty bleak one for the Indian auto industry. The excise duty cut, last year, had helped both the industry and buyers to have a profitable time. The market was just coming out of a slump, sales were just beginning to look up. But as news spread of the government bringing back the excise duty, concerned automakers are now passing on the burden to the customers again. 

    Even other budget carmakers like Maruti, Hyundai and Honda and more have announced a price rise in their respective ranges and now all the industry is doing is looking forward to the new budget which might have a likeable solution for them.

     

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