Mercedes-Benz India (MBI) has announced to increase in prices of L by up to 3%. File
| Photo Credit: Special Arrangement

Mercedes-Benz India (MBI) has announced to increase prices of ‘L’ by up to 3% for its entire model range in the portfolio, effective from January 1, 2025.

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“Increased commodity prices and higher logistics expenses driven by persistent inflationary pressures has posed significant strain on MBI’s overall operational costs,” the company said in a statement. 

This price correction will offset some of the cost pressure to run a sustainable business, it added. 

The price correction will apply to those vehicles which currently are not in stock, offering a price hike for all existing and future bookings until 31st December 2024.

Prices of Mercedes-Benz cars will be revised in the range of ₹2 lakhs for the GLC to ₹9 lakhs for the top-end Mercedes-Maybach S 680 luxury limousine, the company said. 

“Over the past three quarters, we have been facing increased pressure on our cost structure primarily driven by escalating material cost, fluctuating commodity pricing, increased logistics expenses and inflationary cost,” said Santosh Iyer, Managing Director & CEO, Mercedes-Benz India. 

“While we have been absorbing these cost pressures by optimizing our operational costs and driving higher efficiencies, the overall bottom line is getting impacted, considering the current challenges. To ensure the sustainability of our business we have decided for a nominal price correction,” he added.

Different models of Mercedes-Benz cars are parked at the company’s vehicle assembly plant in Chakan, Maharashtra. File.
| Photo Credit: Reuters

German luxury carmaker Mercedes-Benz on Friday (November 15, 2024) said it will hike prices of its vehicles in India by up to 3% on its entire model range in the portfolio from January 1, 2025, citing a rise in input costs, inflationary pressures and higher operational expenses.

Prices of Mercedes-Benz cars in India will be revised by ₹2 lakh for the GLC to ₹9 lakh for the top-end Mercedes-Maybach S 680 luxury limousine, Mercedes-Benz India said in a statement.

The combination of rising input costs, inflation, and higher operational expenses has been exerting considerable pressure on Mercedes-Benz India’s business operations and the company has been absorbing the rise in operational cost since the last three quarters, it added.

“Over the past three quarters, we have been facing increased pressure on our cost structure primarily driven by escalating material cost, fluctuating commodity pricing, increased logistics expenses and inflationary cost,” Mercedes-Benz India Managing Director & CEO Santosh Iyer said.

He further said, “While we have been absorbing these cost pressures by optimising our operational costs and driving higher efficiencies, the overall bottom line is getting impacted, considering the current challenges. To ensure the sustainability of our business, we have decided for a nominal price correction.”

This price correction will apply to those vehicles currently not in stock, offering price protection for all existing and future bookings until December 31, 2024, Mr. Iyer said.

“Flexible financing options from Mercedes-Benz Financial Services will ensure optimal total cost of ownership for our customers,” he added.

Currently, Mercedes-Benz India sells a range of vehicles with prices starting from ₹45 lakh for the A-Class to ₹3.6 crore for the G63 SUV.

New Delhi:

Luxury car maker Mercedes-Benz has received a notice from the Maharashtra Pollution Control Board, accusing it of violating environmental rules. The notice was issued after the pollution control body chairman Siddesh Kadam and other officials visited the Mercedes facility at Chakan near Pune last month for a surprise inspection. The carmaker has been asked to respond to the notice within 15 days.

“Sub-divisional officers of the Maharashtra Pollution Control Board had inspected Mercedes Benz’s Chakan plant. Several pollution rules were found to be violated in it. Therefore, the company has been issued a notice and asked to respond within 15 days,” Jagannath Salunkhe, regional officer of the state pollution control board, has said.

NDTV has accessed the notice, which was issued on Friday.

“The company is not following pollution control rules. Clarifiers and centrifuge units in the sewage treatment plant are not working. It has also not complied with the request for (the) installation of emission control devices for diesel engines. The sewage treatment plant is not properly operated and maintained,” the notices states.

In response, Mercedes Benz India has confirmed that they have received a notice from the Maharashtra Pollution Control Board. “The issues in this notice will be studied and responded to. Our role is to cooperate with government agencies,” the carmaker has said.

The Chakan facility of Mercedes-Benz was set up in 2009 and is spread over 100 acres.