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201212 Dec



If latest indications are to belive then price factor of Mercedes-Benz cars in is sure to soar effective from the very dawn of the new year. Sustained pressure on input costs and adverse exchange rates forced the margins on the backfoot. That is not all; stiff inflation made things worse for Mercedes-Benz India.


Eberhard Kern, Managing Director & CEO, Mercedes-Benz Indiacommenting on the reasons behind price escalation said: “Significant level of cost escalations have been absorbed by us till now, but beyond a point we cannot continue to sustain such levels. We have made substantial investment in our India operations and are responsible for the growth of our employees and dealer partners. We aim for a sustainable profitable growth maintaining our premium appeal and hence, we are going to substantially increase the prices of all Mercedes-Benz cars from January 2013.”


Mercedes-BenzIndiacarries an investment of Rs 850 crores in its production facility in Chakan, Pune. Moreover, additional investment to the tune of Rs. 480 crores has also been made by its dealer partners in its network. Mercedes-Benz India currently operates a well-coordinated network amongst any luxury car maker in India with 72 touchpoints across 31 cities. The company operates two shifts capable of producing 10,000 units annually and locally produces the C-Class, E-Class, S-Class sedans and started the local production of M-Class from October 2012. Mercedes-Benz India also initiated the functioning of its state-of-the-art Paint Shop from October, carrying a capacity of 20,000 units per annum.

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