German auto maker, Mercedes-Benz’s Indian subsidiary has announced a rise in prices for all its models. The price rise will be in the range of about 1 to 4 percent for the locally built models and about 20 percent for the CBUs. The price rise will be effective from April 1st.
Managing Director and CEO of Mercedes-Benz India, Mr. Eberhard Kern said that there are several factors that put immense pressure on the line. The rise in the input costs and ineffective exchange rates have impacted hardly on the company, while at the same time the increase in import duty and the relevant tax structure has also put significant pressure on the business in India. Until now, the company has tried to absorb the portion of the impacts in order to keep up with the business viability, but for now the company is forced to transfer the part of this burden to the customers.
Despite increase in the prices, the value propositioned by the Mercedes-Benz is still quite good. Company has recently rolled out its campaign called “Merconomics” in order to insure the most appropriate cost of ownership in luxury automotive segment. Eberhard Kern further elaborated that company has analyzed every part of the vehicle ownership including finance, leasing, insurance and road assistance, even the cost of service and the repairs going all the way to the residual cost of the vehicle. He said that under Merconomics each of these steps have been analyzed and now allows the customers to enjoy hassle free ownership experience with the feel that the total ownership cost of the Mercedes is far less than any of the vehicles in the same segment.
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