Thursday, 3 March 2016

Mercedes-Benz India to increase prices by 3% to 5% from 15 March



• Ex-showroom prices of the entire Mercedes-Benz model range set to increase by 3% to 5% starting from March 15, 2016

• The introduction of ‘infrastructure cess’ and a luxury tax on the luxury cars announced in the Union Budget 2016 has altered the excise structure, leading to a price revision

• Additionally, the weakening of the Indian currency combined with rising input costs have further exerted pressure on the prices, which compels this price correction

• Smart financial solutions from Mercedes-Benz Financial Services to ensure an optimum cost of ownership experience

• Best Finance and Service Programmes: Unmatched interest rate of 9.99% and a cost of ownership as low as Rs. 1.99/km for New Generation Cars customers 

Mercedes-Benz India to revise the ex-showroom prices of its entire model range by 3% to 5% 

Pune: India’s largest luxury car maker Mercedes-Benz India today announced an upward revision of the price of its entire model range effective from March 15, 2016. The price increase would be between 3% and 5% depending on the model. The imposition of an ‘infrastructural cess’ as well as an additional ‘luxury tax’ announced in the Union Budget 2016, has negatively impacted the prices of the Mercedes-Benz model range. In addition, a weakening currency coupled with rising input costs has been exerting significant pressure to the bottom-line. The combination of all these factors led Mercedes-Benz India to upwardly revise the prices of the entire model range.

Roland Folger, Managing Director & CEO, Mercedes-Benz India commented, “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.”

“Needless to mention, we were expecting some rationalization of the duty structure in the Union Budget, which could have benefited both the luxury car industry and the end customer in multiple ways. On the contrary, we now have the challenge of addressing additional taxation. However, despite this price revision, our innovative and tailor-made financial offerings from Mercedes-Benz like STAR Agility, STAR Finance, STAR Lease and Corporate STAR Lease are specially designed for our discerning customers to drive home their dream Mercedes. These unique solutions provide a benchmark value proposition, enabling a hassle free purchase. Similarly, our service programmes like STAR Ease, STAR Care, STAR Care Plus and On Road Assistance programmes further elevate the customer’s overall ownership experience and make it very much affordable.” Mr. Folger elaborated.  

 Financial solutions: The company’s STAR Finance schemes give tailor made financial solutions, while ‘STAR Supersonic’ scheme also provides extremely fast loan approval in merely 30 minutes. STAR Agility is another unique and innovative product from Mercedes-Benz Financial Services which enhances the flexibility and affordability of owning a Mercedes-Benz. Different aspects of the vehicle ownership ranging from finance, leasing and insurance to roadside assistance, cost of service, repairs and even residual value have been optimized under our financial solutions. One of the highlight offerings is the unmatched interest rate of 9.99% for the New Generation Cars.

 Service packages: Mercedes-Benz India also offers highly affordable service packages and Extended Warranty Programmes which are industry benchmark. Under the STAR CARE programme, warrantable repairs up to 3 years are free of cost without any mileage limitations. This is offered standard with every purchase. Star Care Plus offers 4th year extended warranty which further enhances the resale value. STAR EASE covers essential jobs related to periodic service along with coverage for brake pads, brake discs, wiper blades, wheel alignment and balancing for the contracted period. Mercedes-Benz India is the only luxury car maker to offer the On Road Assistance (ORA) Package as a standard offering for 3 years. This can be purchased for a 4th and 5th year individually. Customers will also be delighted with the introduction of a host of new service programmes. The objective behind the new customized packages for different models of cars will ensure that the ownership experience guarantees complete peace of mind. An exclusive service package for the New Generation Cars will ensure a cost of ownership starting as low as Rs. 1.99/kilometer for the discerning customers.