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Mercedes plans price hike of 3.5-5%

Chennai | Updated on March 08, 2018 Published on March 08, 2018

Michael Jopp, Vice-President, Marketing and Sales, Mercedes-Benz India, at the launch of new S-Class 350d in Chennai

Cost impact due to duty hike is significant, says Michael Jopp

Mercedes-Benz India has said the prices of its models may increase 3.5-5 per cent in the wake of the increase in basic customs duty announced in the Budget.

Import duty of auto parts, accessories and CKD components have been hiked from 5 per cent to 10 per cent apart from levy of social welfare surcharge at 10 per cent.

However, the company is not in a hurry to effect the price hike and is yet to decide on the date for the hike.

“Price increases will come eventually and it will be 3.5-5 per cent depending on the model and the structure. Once we run out of existing stocks and based on the new supplies we get, the price hike will be announced,” said Michael Jopp, Vice-President, Marketing & Sales, Mercedes-Benz India, told The Hindu Group of journalists here.

He admitted that the price hike would see some short-term impact on sales.

But the company is confident of resuming its strong growth supported by several customer-centric initiatives, brand campaigns targeted at young professionals and network expansion in small towns.

Jopp also said that sales in the first two months of 2018 were impressive.

“We are really geared up for a big growth in this quarter. But Q2 and Q3 of 2018 will be more challenging,” he said.

Mercedes-Benz India hoped that there would not by any more major disruption to impact the luxury car industry.

For 2018, the company has chosen ‘The best keeps leading’ as its strategy, under which product offensive plan will receive a strong focus too.

“Overall, there will be more than 10 launches during this calendar year. The new S-Class, which comes inw two variants - S350d (₹1.33 crore) and S450 (petrol version at ₹1.37 crore), is one of our biggest launches of this year,” said Jopp said at the launch here.

Published on March 08, 2018

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