Tag - Luxury car prices

Mercedes-Benz India has announced a price increase of up to 3% across its entire model range, effective from January 1, 2025. The luxury automaker cited rising material costs, fluctuating commodity prices, increased logistics expenses, and overall inflationary pressures as the primary reasons for this adjustment. Price Hike Details The price correction will affect all Mercedes-Benz models that are not currently in stock. However, to mitigate the impact on its customers, the company has offered price protection for all existing and future bookings made until December 31, 2024. This means that customers who book their vehicles before this date will not be affected by the price hike. Reasons for the Hike According to Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, the company has been facing increased cost pressures over the past three quarters. “Over the past three quarters, we have been facing increased pressure on our cost structure primarily driven by escalating material costs, fluctuating commodity pricing, increased logistics expenses, and inflationary costs. While we have been absorbing these cost pressures by optimizing our operational costs and driving higher efficiencies, the overall bottom line is getting impacted, considering the current challenges,” he said. Impact on Mercedes-Benz Models The price increase will range from INR 2 lakh for the Mercedes-Benz GLC to INR 9 lakh for the top-end Mercedes-Maybach S 680 luxury limousine. The adjustment is intended to offset the significant rise in input costs and ensure the sustainability of Mercedes-Benz’s business operations in India. The details of the increase for all models has not been specified yet. However, it is clear that the hike will be between INR 2 lakh to INR 9 lakh depending on the model. Customer Support To ease the transition, Mercedes-Benz Financial Services will continue to provide flexible financing options to ensure optimal total cost of ownership for customers. The company emphasizes that it is absorbing the majority of the increased costs and passing on only a nominal portion to the market. Also Read: Mercedes-AMG launches C 63 S E Performance in India at INR 1.95 crore