India’s largest luxury carmaker, Mercedes-Benz, on Wednesday announced an upward revision of the price of its entire model range. The increase will be between three and five per cent, depending on the model, and effective from March 15.
Sector estimates put the increase in the range of Rs 75,000-7,50,000. Rivals BMW, Audi and Jaguar Land Rover are expected to follow.
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The imposition of an ‘infrastructure cess’ and an additional luxury tax, announced in the Union Budget, has negatively impacted the prices of the Mercedes-Benz model range.
While the luxury car segment posted growth last year, with Mercedes-Benz claiming the top spot, the increase in prices are expected to dampen spirits to some extent, believe market watchers.
Roland Folger, managing director & chief executive, said, “Our expectation of some relief in terms of rationalisation of duties, 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.”
On Tuesday, Mumbai-based Tata Motors raised prices of its entire passenger vehicle offering in the range of Rs 2,000 to Rs 35,000.
The increase is a result of the infrastructure cess, levied by Finance Minister Arun Jaitley in the Union Budget announced on Monday.
Thus, prices of all its passenger cars like Nano, Indica, Indigo CS, Zest, Bolt, Safari, Sumo, Aria have been raised.