Mercedes-Benz India announces up to 2% price increase on select models from January 1, 2024

Mercedes-Benz India has revealed plans to increase the ex-showroom prices of its select model range by up to 2% starting January 1, 2024. The decision comes as a response to a substantial rise in input costs, commodity costs, and logistics costs, coupled with inflationary pressures, impacting the company's overall operational expenses. The price correction aims to offset some of these costs to ensure a sustainable and profitable business operation for Mercedes-Benz and its Franchise Partners.

The extent of the price hike will vary across the model range, with select models experiencing an increase of up to 2%. While the company is committed to absorbing the majority of the escalated costs, a small portion will be passed on to consumers through the impending price adjustment.

The price hike will affect various models differently, with an estimated range from Rs. 2.6 lakhs for the GLS SUV to Rs. 3.4 lakhs for the top-end Mercedes-Maybach S 680.

Speaking on the announcement, Santosh Iyer, Managing Director & CEO, Mercedes-Benz India said “High-cost pressures driven primarily by rising input costs, commodity pricing, increased logistics costs, combined with inflationary pressures have been exerting cost pressure on our overall operations. As we rein in higher efficiencies to offset these rising costs, a slight price adjustment for select models is necessitated to sustain our profitable business operations and retain the price positioning. While we continue to absorb majority of this increase, a small portion must be passed on to the market to offset these cost increase. Our tailored financing solutions from MBFS, will however ensure an optimum cost of ownership for customers, having a minimal impact.”

In response to these financial challenges, Mercedes-Benz India is implementing higher cost efficiencies to mitigate the impact on prices. The company aims to maintain a competitive edge while navigating the complexities posed by increased operational expenses. Mercedes-Benz Financial Services (MBFS) is playing a role in this strategy by offering smart financial solutions to customers. Products like Star Agility+ provide tailored financing options, ensuring an optimum ownership experience for consumers.