Mercedes-Benz India will raise the prices of all its models by up to 4 per cent. The price increase will be effective from January 22, 2015.
The move has been triggered by the withdrawal of excise duty concessions on December 31, 2014, the company said in a press release.
Eberhard Kern, Managing Director & CEO, Mercedes-Benz India, said, “The excise duty cut was of much relief to the automotive sector in general and luxury cars, in particular. However, the end of excise benefit left us with no option but to pass on the additional cost to our customers.”
Mercedes-Benz sells a range of products in India — from luxury hatchback A—Class priced at Rs 26 lakh to sedan S 500 priced at Rs 1.44 crore (both ex—showroom Delhi).
Besides, it also sells the AMG range — starting with CLA 45 AMG at Rs 68.5 lakh to G63 AMG priced at Rs 1.8 crore.
Despite the price hike, the company would work to make it easier for customers to buy its products through financial solutions from Mercedes-Benz Financial Services, he said.
“One of the new highlight offerings will be the unmatched interest rate of 9.99 per cent for new generation cars customers,” Kern added.
In December, rival BMW had announced raising product prices in India by up to 5 per cent with effect from first week of January.
Last week, major car makers, including Maruti Suzuki, Hyundai, GM India and Honda had raised vehicle prices by up to Rs 1.27 lakh.
( With additional inputs from PTI.)