Mercedes Benz India, the Indian subsidiary of the German luxury automobile manufacturer Mercedes-Benz has announced a price hike across its entire range of car models in India. The price hike will come into effect from April 1, 2013 and will range from 1-4 percent on the locally produced models. The CBUs by the carmaker will witness an increase of upto 20 percent in price.
The price hike by the German automaker is said to be on account of the rising input costs and the fluctuating exchange rate of the Indian rupee. The recent change in the import duty structure as part of the Budget 2013-14 announced in February 2013 is also likely to be a determining factor for the price hike.
According to Mr. Eberhard Kern Managing Director & CEO Mercedes-Benz India, the changes in the import duty structure has put huge pressure on the carmaker’s business in India and hence it is forced to pass on a portion of the burden to its customers.
