Mercedes-Benz India to Implement Price Hike Amidst Currency Challenges

Mercedes-Benz India plans a price hike of up to 2% on vehicles from January due to the weakening rupee against the Euro. This decision follows persistent currency challenges affecting costs, despite efforts towards localization. The increase aims to maintain operational sustainability amidst rising input costs and logistical expenses.

Mercedes-Benz India has announced a plan to increase vehicle prices by up to 2% starting January, a move aimed at counterbalancing the financial strain caused by the rupee's depreciation against the Euro.

This price adjustment comes amidst ongoing challenges in the luxury automotive market, as forex pressures have continued longer than anticipated, according to the company's statement. The company's MD and CEO, Santosh Iyer, noted the persistent currency headwinds affecting operations, particularly impacting the supply chain for both locally assembled and completely built vehicles.

Despite a strong localization strategy, which mitigates many cost increases, Mercedes-Benz India emphasizes that this selective price hike is crucial for maintaining its operational health. The brand also highlighted the role of the Reserve Bank of India's rate reductions in lessening the price impact on customers.

(With inputs from agencies.)