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New Delhi: German luxury carmaker Mercedes-Benz on Friday said it will hike prices of its vehicles in India by up to 3 per cent on its entire model range in the portfolio from January 1, 2025, citing a rise in input costs, inflationary pressures and higher operational expenses.
Prices of Mercedes-Benz cars in India will be revised by 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.
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, it added.
"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," Mercedes-Benz India Managing Director & CEO Santosh Iyer said.
He further said, "While we have been absorbing these cost pressures by optimising 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."
This price correction will apply to those vehicles currently not in stock, offering price protection for all existing and future bookings until December 31, 2024, Iyer said.
"Flexible financing options from Mercedes-Benz Financial Services will ensure optimal total cost of ownership for our customers," he added.
Currently, Mercedes-Benz India 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.