Mercedes 2012 sales at 7,138 units; to up prices by 1-3%

Moneycontrol Bureau

German luxury car maker Mercedes-Benz on Tuesday said it sold 7,138 units in India in 2012 (Jan-Dec), in line with expectations, and will raise prices by 1-3 percent from Jan 14. "Rising inputs cost, volatility of the rupee-euro, high interest rates and other associated factors have put significant pressure on us. Consequently, we are forced to share a part of this burden with our customers and we will increase prices of our vehicles to the tune of 1-3 percent," said, Eberhard Kern, MD & CEO, Mercedes-Benz India. The price of the B-Class will go up by 1 percent, C-Class and E-Class sedans price will rise 1.5 percent and the S-Class sedan will be costlier by 3 percent. Price of the M-Class will increase by 3 percent and it has raised prices of its completely built units (CBUs) like SLK, CLS, R Class and SLS AMG by 1 percent, it said. Mercedes said it has seen strong demand for some of its models like the M-Class sports utility vehicle, which was launched in May last year and is booked until May 2013. The B-Class in the sports tourier category is also booked until next month, it added. The luxury car market in India has seen intense competition in recent years, with Audi, BMW, apart from Mercedes among the top sellers. Mercedes said it pursued "its aggressive network expansion strategy" last year. It has opened 6 new touchpoints in tier II and III cities, thus taking its total network to 72 touchpoints and 31 cities. It claims that its network is densest among all luxury car manufacturers in India. Mercedes is not the only company raising prices. Most other passenger vehicle makers have annouced price hikes across segments from Jan.