Mercedes-Benz to Increase Car Prices Across Range in India by 3% to 5%

As per the Mercedes-Benz India's statement, there are two major reasons for this price hike in the country. One, the introduction of infrastructure cess and a luxury tax on the luxury cars announced in the Union Budget 2016 and Second, the weakening of the Indian currency combined with rising input costs the has further exerted pressure on the prices. In fact this it's the second price hike for Mercedes-Benz India after January 2016.

Also Read: Budget 2016 - Woes for Passenger Vehicle Industry

Commenting on the company's decision, Roland Folger, Managing Director & CEO, Mercedes-Benz India said, "Mercedes-Benz India has been in the fore front of providing luxury automotive experiences to the Indian customers with the latest products and technology, state-of-the-art retail infrastructure, significant investment in the production facility and offering unparalleled service and ownership experiences. However, contrary to our expectation of some relief in terms of rationalization of duties, the introduction of additional duties and taxes in this year's Union Budget has adversely affected our pricing."

The year 2015 had been a very productive one for the German carmaker, who brought in 15 new products in to the market gaining to top spot as India's largest luxury car manufacturer. In fact Mercedes-Benz India is on a positive growth curve and the company has all the intensions to maintain this growth in a dynamic market like India.

In his statement Folger put additional emphasis on the company's various financial scheme and said, "despite this price revision, our innovative and tailor-made financial offerings from Mercedes-Benz like STAR Agility, STAR Finance, STAR Lease and Corporate STAR Lease are specially designed for our discerning customers to drive home their dream Mercedes. These unique solutions provide a benchmark value proposition, enabling a hassle free purchase. Similarly, our service programmes like STAR Ease, STAR Care, STAR Care Plus and On Road Assistance programmes further elevate the customer's overall ownership experience and make it very much affordable."

Currently Mercedes-Benz India offers the largest line-up of cars compared to any luxury carmaker in India. Starting from the A-Class going up to the uber-exclusive Mercedes-Benz S Guard, the carmakers entire range is priced between Rs. 26.1 Lakh to 8.9 Crore (Both ex-showroom, Delhi).