Luxury car maker Mercedes-Benz India today said prices of all its models would be revised upwards effective January 2013. A constant increase in input costs and unfavourable exchange rates coupled with inflation posed a severe strain on margins.
Eberhard Kern, Managing Director & CEO, Mercedes-Benz India said, "A significant level of cost escalations have been absorbed by us till now, but beyond a point we cannot continue to sustain such levels. We have made substantial investment in our India operations and are responsible for the growth of our employees and dealer partners. We aim for a sustainable profitable growth maintaining our premium appeal and hence, we are going to substantially increase the prices of all Mercedes-Benz cars from January 2013."
Mercedes-Benz India has invested Rs 850 crore in its production facility in Chakan, Pune, apart from an investment of Rs 480 crore made by its dealer partners in its network. The company currently has 72 touchpoints across 31 cities.
Keywords: Mercedes-Benz India to hike price, Mercedes-Benz to hike prices to offset cost escalations, Mercedes-Benz India Managing Director & CEO Eberhard Kern, higher input costs, unfavourable exchange rate