Mercedes-Benz India has announced a price hike of up to 2% across its model range, effective January 1, 2017. The increased manufacturing costs and fluctuating exchange rates are the reason behind this, said the company in an official release. Hyundai, Tata Motors, Toyota, Renault and Nissan have all announced a price hike from Jan 1 2017, for a similar reason.
Roland Folger, Managing Director & CEO, Mercedes-Benz India said, “A steady rise in input costs against the backdrop of an increasing forex rates and high inflationary cost together have eroded our bottom-line. We were left with fewer options but to make some necessary price adjustments to our product range in order to protect the investment of our customers.”
“We, hence, decided to absorb a higher impact of these adversary factors on our price and pass a lesser part of it to customers, considering the current negative customer sentiment. We want to maintain a sustainable business in this dynamic market and want to retain our premium brand positioning” He added.
The demonetization has slowed down the sales and foot falls across the industry, which has led to piling up the inventory, and some shutting down the production for days. The price increase move will probably add to the situation.
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