Mercedes-Benz India announces 2% price hike starting January 1
Mercedes-Benz has announced that starting January 1, 2024, it will raise the prices of select cars in India by up to 2%. Although the company hasn't released a full list of affected models, the increase will range from Rs. 2.6 lakh for GLS to Rs. 3.4 lakh for the Maybach S-Class S680. This move follows similar announcements from other car manufacturers in India, who have cited rising input, commodity, and logistics costs as reasons for the price hikes.
Price correction due to inflationary pressures and rising costs
In a press statement, Mercedes-Benz called the price increase a "price correction" and linked it to inflationary pressures. The company explained, "A combination of these factors has prompted Mercedes-Benz India to upwardly revise the ex-showroom price of its select models, offsetting some of these costs to sustain a profitable business for the company and its Franchise Partners." It also noted that while most of these costs will be absorbed, a small portion will be passed on to the market.
Tailored financing solutions to minimize impact on customers
Despite the price hike, Mercedes-Benz India assures that its finance-related services will continue to offer a simplified buying experience for customers. Santosh Iyer, MD and CEO of Mercedes-Benz India, stated, "Our tailored financing solutions from MBFS (Mercedes-Benz Finance Service) will however ensure an optimum cost of ownership for customers, having a minimal impact." This strategy aims to lessen the effects of the price increase on customers while maintaining profitability for the company and its partners.
