Mercedes to raise prices by up to 3% from Jan 1
Pune: Mercedes-Benz, the German luxury carmaker, on Friday hiked prices of its entire vehicle model range in India by up to 3 per cent, which will be effective from January 1, 2025, citing a rise in input costs, inflationary pressures and higher operational expenses.
Mercedes cars prices now range from a minimum of Rs 2 lakh for the GLC to Rs 9 lakh for the top-end Mercedes-Maybach S 680 luxury limousine, Mercedes-Benz India said in a statement.
This increase in prices will not apply to those vehicles currently in stock, offering price protection for all existing and future bookings until December 31, 2024, the company clarified.
Pune-based automaker will unveil two more luxury cars in CY24 priced over Rs 1.5 crore.
The combination of rising input costs, inflation, and higher operational expenses has been exerting considerable pressure on Mercedes-Benz India's business operations and the company has been absorbing the rise in operational cost since the last three quarters, the company said.
"Over the past three quarters, we have been facing increased pressure on our cost structure primarily driven by escalating material cost, fluctuating commodity pricing, increased logistics expenses and inflationary cost," said Santosh Iyer, MD and CEO at Mercedes-Benz India.
"While we have been absorbing these cost pressures by optimizing our operational costs and driving higher efficiencies, the overall bottom line is getting impacted, considering the current challenges. To ensure the sustainability of our business, we have decided for a nominal price correction," he said.
At present, Mercedes sells a range of vehicles with prices starting from Rs 45 lakh for the A-Class to Rs 3.6 crore for the G63 SUV.
"Flexible financing options from Mercedes-Benz Financial Services will ensure optimal total cost of ownership for our customers," Iyer noted.