Mercedes-Benz may again hike price in Sept
Chennai: German-luxury car brand Mercedes-Benz India has indicated a further price increase for its cars from September, citing adverse fluctuation of Euro against the Indian Rupee, a top official said here on Monday. The company already revised its prices by 1.5 per cent, each in January and June this year, Mercedes-Benz India Managing Director and CEO Santosh Iyer said. 'If you see, yesterday night, one Euro is equal to Rs99 and it is the first time that Euro has breached the Rs98 mark.
We had priced our cars (when One EURO) was at Rs89-90. With Euro going up, even though we localise more than 30 per cent of our cars, 70 per cent of the cars still have European content and when the EURO goes up (against Rupee), the price (of Mercedes-Benz range of cars) will go up,' he told reporters. He noted that Mercedes-Benz has already effected a price increase of its cars twice in 2025, in January and June. Up to 1.5 per cent was the increase in hike. 'And the third one (increase in price) equal to 1.5 per cent will come in September, because we cannot pass this in one go and we are doing it in phase wise,' he said.
Despite the proposal to increase the price of cars, Iyer sounded optimistic on retail sales with the Reserve Bank of India announcing interest rate cuts twice this year. 'We have non-banking finance company, Mercedes-Benz Finance and this arm has also reduced the interest rates. About 80 per cent of our cars are financed and today, if you look at June, the price of cars (of Mercedes-Benz) has gone up. But the EMIs remain the same.' he said. He added that the interest rate cuts announced by the Reserve Bank is helping the sales of Mercedes-Benz range of cars for sure.
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