Mercedes-Benz announced price hike on December 11, 2012 for its entire product range. These new prices will be effective from Jan 2013. The price rise can be attributed to the increasing production cost, inflation and fluctuating rupee value against the dollar. Among the luxury car makers, Mercedes holds the biggest network of the dealers with 72 dealerships in 31 cities across country. Mercedes produces models like C-Class, S-Class and E-Class sedans locally and has also started the production of M-Class from October 2012. The cost elevation and fluctuating rupee value have created concern for the company.
Managing Director and CEO of Mercedes-Benz India, Mr. Eberhard Kern said that many levels of cost elevation that has been sustained by the company till now has gone beyond the toleration point and it is now not possible for company to put more hold on the cost rise. He further added that the company is aiming for a sustainable and profitable growth and also maintaining its appeal, hence the company is increasing its price for all models form January 2013.