Mumbai/New Delhi, Dec 11 (IANS)
Luxury car maker Mercedes-Benz India Tuesday announced it would 'substantially' hike the prices of all its models next month to offset rising input costs, unfavourable exchange rates and inflation, all of which have hit profit margins.
"Significant levels of cost escalations have been absorbed by us till now. But beyond a point we cannot continue to sustain such levels," said managing director Eberhard Kern.
However, the levels of the price hike for its various models has not yet been disclosed.
Kern pointed out that the company has made substantial investments to the tune of Rs.8.50 billion in the production facility at Chakan, near Pune, besides another Rs.4.80 billion by its dealer partners network in the country.
"We are responsible for the growth of our employees and dealer partners. We aim for a suitable profitable growth maintaining our premium appeal and are going to substantially to increase the prices of all Mercedes-Benz cars from next month," Kern said.
The company currently has the densest network amongst any luxury car maker in India with 72 touchpoints in 31 cities across India.
At its Pune manufacturing facility, it operates in two shifts capable of producing 10,000 units annually.
The company produces the C, E, S and M Class sedans locally and two months ago (Oct 2012) it kicked off its technologically advanced paint shop with a capacity of 20,000 units per annum.--IANS