Mercedes-Benz India, the Indian arm of the German luxury car manufacturer Mercedes-Benz has announced that it will be hiking car prices across its car portfolio in India by up to 10 percent from the month of January 2014.
The decision by the carmaker comes after rival luxury car players Audi and BMW have already announced price hike from January 2014. It is being speculated that the decision to increase prices has been taken to offset the pressure on business operations due to the unfavorable economic factors in India.
Carmakers operating in India are resorting to price hikes in order to transfer the burden of low economic activity and sluggish sales in the Indian auto industry combined with inflation and the resulting increase in the import and production costs.
Top carmakers such as Maruti Suzuki, Hyundai India and Honda have also announced price hikes in the month of January 2014 owing to similar reasons.
