The price revision is due to the imposition of an ‘infrastructural cess’ as well as an additional ‘luxury tax’ announced in the Union Budget 2016. Additionally, a weakening currency coupled with rising input costs has been exerting significant pressure to the bottom-line.
Roland Folger, Managing Director & CEO, Mercedes-Benz India said,“Mercedes-Benz India has been in the fore front of providing luxury automotive experiences to the Indian customers with the latest products and technology, state-of the-art retail infrastructure, significant investment in the production facility and offering unparalleled service and ownership experiences. However, contrary to our expectation of some relief in terms of rationalization 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, in order to protect our investments to provide an unparalleled brand experience to our customers. Mercedes-Benz India is on a positive growth curve and we have a clear focus on maintaining a sustainable business in this dynamic market. We also want to maintain our premium brand positioning in the market and sustain the strong foundation which we have created with
the trust of the Indian customers for the brand Mercedes-Benz for over two decades now”