High Excise Duty Forces Mercedes Benz India To Hike Prices By 4%

Reeling under the pressure of high excise duty on petrol and diesel, German luxury auto maker Mercedes Benz India has hiked the price of its cars across categories with effect from January 22, 2015. The luxury auto major has increased the prices by 4%, across its range of models.

“India is on a strong growth curve with a clear focus on maintaining a profitable and sustainable growth. We want to maintain our premium brand positioning in the market and sustain the strong foundation which we have created for the brand in India,” said Eberhard Kern, managing director and CEO, Mercedes Benz India.

However, the company is quick to cushion the effects of the price hike on its consumer. The company has toyed with its financial solution options offered to the consumer. “One of the new highlight offerings will be the unmatched interest rate of 9.99% for new generation cars customers. These solutions will provide benchmark value proposition, enabling a hassle free purchase, while our service programmes like Star Care, Star Ease and On Road Assistance programmes, will enhance the customer’s overall ownership experience,” added Kern.

The government rolled back the excise duty cut in the last week of December, which has started impacting the auto sector in the country. Another luxury auto giant and rival BMW had increased its prices in December last week in 2014. The negative impact of the high excise duty was also seen in the mass segment, with Maruti and Hyundai increasing the prices.