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Arun Jaitley’s Budget 2016 makes Mercedes-Benz hike prices up to 5%

Thu March 03 2016, 7:12 am
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    The imposition of 'Infrastructure cess' as well as an additional ‘luxury tax’ in Arun Jaitley's Budget 2016 on high-end cars has altered the excise structure causing the carmaker to revise prices upward. Additionally, the weakening of the Indian currency combined with rising input costs have further exerted pressure on prices, the company added. (Reuters)

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    Roland Folger, CEO of Mercedes-Benz India stated: "the introduction of additional duties and taxes in this year's Union Budget has adversely affected our pricing. On top, the steady rise of input costs against the backdrop of a weakening Indian currency has further eroded our bottom-line. We were hence left with no option but to make some necessary price adjustments to our product range". The 3-5 per cent increase of Mercedes Benz India entire model range will take effect from March 15, 2016. Regarding Honda, there will be a price rise ranging from Rs 3000 on small car Eon to Rs 80000 on SUV Santa Fe. According to Rakesh Srivastava, senior vice-president (marketing & sales), Hyundai Motor India Limited (HMIL) “The increase in taxes has come as a big dampener and will further impact demand creating growth challenges especially for SUVs and diesel vehicles. This will necessitate a revisit of business plans." The increase of prices of some vehicles is likely to have a negative effect on the overall demand in the automobile market. Consumers’ demand is expected to go up until April when the infra cess will take effect, and then gradually decrease. (By Santanu Kumar, Editor, India Transport Portal). (Reuters photo)

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    “However, despite this price revision, our innovative and tailor-made financial offerings from Mercedes-Benz like STAR Agility, STAR Finance, STAR Lease and Corporate STAR Lease are specially designed for our customers to drive home their dream Mercedes. These unique solutions provide a benchmark value proposition, enabling a hassle free purchase. Similarly, our service programmes like STAR Ease, STAR Care, STAR Care Plus and On Road Assistance programmes further elevate the customer’s overall ownership experience and make it very much affordable.” Folger elaborated. (Reuters)

  1. S
    seshadri
    Mar 2, 2016 at 4:15 pm
    sabse bada choothya papu
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