Mercedes-Benz India will increase car prices by up to 2% from January, citing rising raw material, logistics costs, and adverse euro-rupee exchange rates.
MERCEDES-Benz’s India unit will increase the price of its cars by up to 2% starting January due to rising raw material and logistics costs, the luxury carmaker said on Friday.
The company said that the euro-rupee exchange rate has traded persistently above the 100 rupee ($1.11) mark this year, increasing operational costs.
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The prolonged volatility “affects every aspect of our operations, from imported components for local production, to completely built units,” Santosh Iyer, Mercedes-Benz India’s MD and CEO said in a statement.
The company said it is considering further quarterly price adjustments to better align with current foreign exchange rates. It added that it is absorbing a majority of cost pressures and passing a nominal portion to customers.
Mercedes leads sales of luxury vehicles in India, followed by BMW and Tata Motors Passenger Vehicles -owned Jaguar Land Rover (JLR). ($1 = 90.3400 Indian rupees) – Reuters
