The revised pricing to come in effect from January 2017
Another price hike! This time from luxury car maker, Mercedes-Benz. The Stuttgart based manufacturer is the first of the luxury brands to announce a revision in price but we expect others to follow the suit soon. All Mercedes-Benz models will be priced 2 per cent more starting January 2017. Tata, Renault, Hyundai, Toyota and Honda have already announced similar hikes in the price of their products. All of these car makers have announced that the rise in price as a result of increase in input costs and fluctuating exchange rates.
Roland Folger, Managing Director & CEO, Mercedes-Benz India said, "A steady rise in input costs against the backdrop of an increasing forex rates and high inflationary cost together have eroded our bottom-line. We were left with fewer options but to make some necessary price adjustments to our product range in order to protect the investment of our customers.
Following the announcement of demonitisation of Rs 500 and Rs 1000 notes, the automotive industry has taken a bit of a hit and the increase in price starting January will only dip the sales further. Car makers are finding it difficult to convert enquiries into sales and bookings have reduced too. A majority of sales in the automotive industry are through the various finance options and partly through debit/credit cards, the general attitude of customers towards buying items of luxury has changed.
Mercedes-Benz has been extremely aggressive in India in the last few years. The luxury car maker introduced 15 models in 2015 and had planned 12 launches in 2016. However, in a surprise move, Mercedes-Benz recently introduced the AMG C 43, its 13th model for 2016. Following its offensive strategy in 2015, M-B took the top spot among the luxury car makers and has retained it since then.