Following recent announcements from fellow German luxury car makers Audi and BMW, Mercedes-Benz India has now said that it too will be hiking the prices of its range of cars next year. Effective January 1, 2014, the entire Mercedes-Benz portfolio will see a price hike of up to 10 percent, comparable to the price hikes from BMW (7-10 percent) although higher than those from Audi (3-5 percent).
Luxury car makers, even for models that are assembled here in India, rely quite heavily on components from overseas, and therefore import duties and exchange rates play a very significant and very direct role in their pricing structure. Back in July, when the Indian Rupee hit a serious low against the US Dollar and just about every car maker announced a price hike, Mercedes-Benz initially bucked the trend by keeping its prices unchanged. However, by September, it too caved in and raised its prices by 2.5-4.5 percent, citing the exchange rate, import duties and rising input costs as reasons.
While the company has not cited any specific reasons for the upcoming price hike in January, Eberhard Kern, managing director and CEO, Mercedes-Benz India did hint that the current market conditions had some part to play. “Mercedes-Benz stands out for its iconic luxury offerings and continues to be admired for its complete luxury product experience,” he said.
“A fantastic year of offensive focus has helped us achieve tremendous success in India despite challenging market conditions and we will continue to build on our success by further enhancing our after-sales programmes, dealer network and customer support. As market dynamics continue to evolve, we are committed to offer the best luxury experience and delight our valued customers.”
As before, Mercedes says its financial solutions – ‘Flexinomics’, ‘Star Agility’ and ‘Star Supersonic’ loan approvals – will help buyers have a hassle-free purchase, with after-sales programs like Star Care, Star Ease and Road Side Assistance helping to enhance the overall ownership experience. Comprehensive as they may be, whether or not these services are able to successfully soften the blow of a price hike of as much as 10 percent remains to be seen in the sales figures of 2014.