German luxury carmaker Mercedes-Benz today announced that it will hike prices of its entire range of products in India by 4 per cent from January 22 to offset impact of higher excise duty, post withdrawal of concessions by the Central government.
The end of the excise duty cut on 31-December, 2014 has been instrumental in the price revision of Mercedes-Benz products, the automaker said in a press note.
Commenting on the hike, Eberhard Kern, Managing Director & CEO, Mercedes-Benz India said: “The excise duty cut was of much relief to the automotive sector in general and luxury cars, in particular. However, the end of excise benefit left us with no option but to pass on the additional cost to our customers.
“Despite the price hike, the company would work to make it easier for customers to buy its products through financial solutions from Mercedes-Benz Financial Services,” Kern said, adding, “One of the new highlight offerings will be the unmatched interest rate of 9.99 per cent for new generation cars customers.”
Mercedes-Benz sells a range of products in India – from luxury hatchback A-Class priced at Rs 26 lakh to sedan S500 priced at Rs 1.44 crore (both ex-showroom Delhi). It is expected to launch the latest CLA-Class, one of the hottest-selling sedans of last year, in India this month. Besides, it also sells the AMG range – starting with CLA 45 AMG at Rs 68.5 lakh to G63 AMG priced at Rs 1.8 crore.