Both, Hyundai and Mercedes-Benz have sighted increase in input costs for the rise in the price of their products. Expect other car makers to announce an increase in cost of their cars too
It is that time of the year when car makers announce an increase in price of their products. This time around, Hyundai and Mercedes-Benz are the first to make the move. The Korean car maker will be increasing the price of its cars by up to Rs 9,200. Thankfully, the prices of the recently launched Venue and Kona electric have not been revised. Mercedes-Benz on the other hand will cost 3 percent more than the current price. Revised prices for both manufacturers will come into effect from 1st August, 2019.
Hyundai has increased the price of its products in light of the increase in input costs and the new enhanced safety regulations by the government. Meanwhile, Mercedes claims that an increase in the customs duty of automotive parts and the additional cess and excise duty have forced them to revise the current price.
Speaking about the topic, Martin Schwenk, Managing Director & CEO, Mercedes-Benz India said, “As a hike in custom duty on automotive parts, compounded by an increase in excise duty and cess on fuel have had a significant impact on our bottom line. We were left with fewer options, but to make some necessary price adjustments to our product range at the moment to offset the impact of the rising input costs.”
Expect other manufacturers to follow the lead and increase the prices in the near future too. The automotive industry has already been experiencing a slowdown in India a further increase in the price of cars may not go too well with potential customers.