Mercedes-Benz India on November 15 announced it will raise prices of its entire model range by up to 3 percent to offset rising input costs, the automaker said in a press statement.
However, German carmaker said price correction will apply to those vehicles currently not in stock and offer protection for all the existing and future bookings of cars until December 31.
The company said the combination of rising input costs, inflation, and higher operational expenses has been exerting considerable pressure on its India’s business operations and Mercedes-Benz has been absorbing the rise in operational cost since last three quarters.
Santosh Iyer, managing director & CEO, Mercedes-Benz India, said the company has been facing "increased pressure" on the cost structure due jump in material cost in the last three quarters.
"While we have been absorbing these cost pressures by optimizing our operational costs and driving higher efficiencies, the overall bottom line is getting impacted, considering the current challenges," Iyer said in a statement.
The price correction has been introduced to "ensure the sustainability of our business", he said adding that this correction will apply to those vehicles currently not in stock, offering price protection for all existing and future bookings until December 31st.
The auto giant said it has decided to revise the ex-showroom prices of the entire model range to offset operational and inflationary pressures. According to the statement, prices of Mercedes-Benz cars will be revised by Rs 2 lakh for the GLC to Rs 9 lakh for the top-end Mercedes-Maybach S 680 luxury limousine.
"Although, the company will continue to absorb the bulk of these costs, a nominal portion will be passed on to the market," the statement added.
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