German luxury car manufacturer Mercedes-Benz has stated that its profits in India will be significantly affected by the depreciation of the Indian rupee as well as the hike in the import duties on completely built units (CBU) by the Indian government.
According to Mr. Peter T Honegg Managing Director and CEO of Mercedes Benz India, the company increased the prices across its portfolio by 5-6 percent in order to cope with the hike in duties. He also stated that if the Indian rupee doesn’t recover from the present depreciation, the company will have to stop the sale of certain car models or further increase prices.
Mr. Honegg also commented that if the proposed Free Trade Agreement between the European Union and India comes through, it may have a positive effect in terms of import duties.
