Mercedes Benz India has officially announced a price hike in its luxury cars effective from May 2011. There is no detail on how much the hike will be, but as per the industry estimates, it should be up to 2% hike in the price across various models. Mercedes Benz is one of the first car makers in luxury segment to announce this hike which heavily relies on CKD units for its luxury cars. The major reason expected behind this hike is the abrupt revision in the duty structure for the CKD components which came into effect from April 2011.
Mr. Peter Honegg, Managing Director and CEO of Mercedes-Benz India quoted:
The rising input costs and challenging exchange rates as well as inflationary impacts are areas that have a bearing on the cost of the final product. We have absorbed these to a significant level but moving forward we will have to pass on some portion of this impact to the customer. The prices of all Mercedes-Benz models will be revised upwards effective 1st May 2011 for the India
This is certainly not a welcomed news for the customers planning to buy a Mercedes in near future. The luxury does come at a price, a price which is further more from May 2011 onwards.
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