Mercedes to hike prices of select models in India owing to weakening currency1 min read . Updated: 14 Sep 2020, 05:35 PM IST
Mercedes says while it will be absorbing most of the impact from various factors that are exerting pressure, a 2% hike on select models has become inevitable.
Mercedes-Benz India on Monday announced it will hike prices on select models in its portfolio here by up to two per cent and effective from October.
Blaming factors such as weakening Indian ₹vs euro over the past several months and rising input costs, Mercedes says these have been exerting 'significant pressure' on operations.
"Mercedes-Benz also has been introducing new technologies and features like ‘Mercedes Me connect’ across its product portfolio making them enhanced and updated. The combination of all these factors led Mercedes-Benz India to correct the prices of its select model range," a press statement informed.
While the company has not pointed out which of its models will receive the hike, Mercedes is confident that its recent finance schemes will continue to make its cars easier to purchase. "Despite the nominal price revision, our specially designed financial programmes like Wish Box 2.0 and a host of service packages will enable the discerning customers to drive home their favourite Mercedes-Benz," said Martin Schwenk, Managing Director and CEO, Mercedes-Benz India.
Schwenk further added that it has become imperative to go in for a price revision in current times. "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," he said. "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%, seems inevitable."