Pune, India: Starting January 1, 2025, Mercedes-Benz India will implement a price adjustment of up to 3% across its entire model range. This decision, driven by rising input costs, inflation, and escalating operational expenses, marks a strategic move to sustain the company’s business operations in the face of mounting financial pressures.
CEO’s Perspective
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, explained the rationale behind the move:
“Over the past three quarters, we have faced significant cost challenges due to increasing material costs, fluctuating commodity prices, and heightened logistics expenses. While we have mitigated these pressures through operational efficiencies, the overall bottom line remains impacted. To maintain business sustainability, we are introducing this nominal price correction. However, we remain committed to ensuring value for our customers through price protection and flexible financing options.”
Key Highlights of the Price Revision:
- Scope: A price increase of up to 3% across all models, effective January 1, 2025.
- Customer Assurance: Price protection is available for all existing and future bookings made by December 31, 2024, for cars currently not in stock.
- Impact on Prices: The revision translates to an increase of ₹2 lakh for models like the Mercedes-Benz GLC and up to ₹9 lakh for the ultra-luxurious Mercedes-Maybach S 680 limousine.
Why the Hike?
The price adjustment stems from the significant rise in input costs, including raw materials and logistics, alongside inflationary pressures that have strained the company’s financial framework. While Mercedes-Benz India has absorbed the majority of these cost increases over the last three quarters, the company now finds it necessary to pass on a nominal portion to customers.
Focus on Customer Support
Despite the hike, Mercedes-Benz India reassures its customers of an optimal ownership experience. Through Mercedes-Benz Financial Services, the company offers tailored financing solutions, ensuring manageable costs of ownership and enhancing customer satisfaction.
As India’s premier luxury car brand, Mercedes-Benz remains committed to balancing its operational sustainability with customer-centric solutions. This price adjustment is seen as a step to ensure the brand’s long-term growth without compromising its high standards of luxury and service.
