Mercedes-Benz to hike prices of all models from 1 April
15 Mar 2013
Luxury car maker Mercedes-Benz India on Thursday said it will hike the prices of its entire range from 1 April, with a top increase of up to Rs58 lakh on imported vehicles.
The hike in price ranges from 1 to 4 per cent for locally produced models, and is up to 20 per cent for select CBUs (completely built units or fully imported vehicles), the company said in a statement.
The company's range of models sold in India starts from the B-Class and goes up to the SLS AMG, with prices ranging from Rs21.5 lakh to Rs2.9 crore.
At present, the company assembles its C Class, E Class and S Class sedans along with the sports utility M Class in its plant at Chakan near Pune.
Mercedes-Benz India managing director and chief executive officer Eberhard Kern said in New Delhi, "There are several factors that have put significant pressure on our bottom lines. Rising input costs and volatile exchange rates have impacted us, while the recent changes in import duty structure and increase in relevant taxes have put significant stress on our business.
"We have absorbed a portion of the impacts but to retain business viability, we are forced to pass on a part of this burden to the consumers."
In the Budget 2013-14, Finance Minister P Chidambaram had announced that basic customs duty on new passenger cars and other motor vehicles valued at more than $40,000 (Rs21.7 crore) and/or engine capacity of over 3,000 cc for petrol and over 2,500 cc for diesel cars would be increased to 100 per cent from 75 per cent earlier.
Also, excise duty on SUVs was raised from 27 per cent to 30 per cent.
