The price hike will affect the prices of the entire range of Mercedes Benz which consists of 24 models.
The Indian division of Mercedes Benz on Thursday (yesterday) announced that there will be a price hike of up to 2% across the range starting from January 1, 2016. Despite extensive localisation achieved recently, the reason for price hike according to the company is rising input prices. It aims at setting off these input prices by the price hike.
Commenting on the price hike, Roland Folger, Managing Director and CEO, Mercedes Benz India said :
“Mercedes Benz has been creating continuous value propositions for the Indian customers by offering the best products from our global portfolio in India. We have enhanced this value addition even further through our localisation efforts. However, with rising input costs, we are compelled to make some price adjustments to our product range to protect the investment of our customers in the brand, maintain our premium brand positioning in the market and sustain a profitable business. We want to further enrich the strong foundation which we have created for the brand in India.”
A similar move was taken by the company’s arch rival BMW last week. BMW India announced that there will be a price hike of 3% across the range and also on the Mini brand. Compared to BMW, Mercedes Benz has made a smaller change in the prices.
The German automaker has registered an all-time high sales figure this year. The company sold 10,079 units in the January-September period in 2015 which is around 34% more than last year’s sales during the same time span.
Mercedes Benz, at the beginning of 2015, had promised to launch 15 products in the Indian market. out of which, 14 are already launched. The 14th product was the SLS replacement, Mercedes GT S launched last month. The last product for this year will be the 2016 A-Class expected to launch on the 8th of December.