Merc to hike prices by up to Rs 58 lakh from April

Luxury car maker Mercedes-Benz India will hike prices of its entire range that will translate into an increase of up to Rs 58 lakh (Rs 5.8 million) on imported vehicles from April 1.

The hike in price ranges from 1-4 per cent for locally produced models, and up to 20 per cent for select completely built units, the company said in a statement.

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The company sells a rage of models starting from the B-Class to SLS AMG with price ranging between Rs 21.5 lakh (Rs 2.15 million) and Rs 2.9 crore (Rs 29 million).

While the company did not share the break up of the price hikes, sources said the highest price hike could be on the imported luxury sports car SLS AMG, by about Rs 58 lakh (Rs 5.8 million).

At present, the company assembles its C Class, E Class and S Class sedans along with SUV M Class at its Chakan plant near Pune.

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Mercedes-Benz India Managing Director & CEO Eberhard Kern said: "There are several factors that have put significant pressure on our bottomlines.

"Rising input costs and volatile exchange rates have impacted us, while the recent changes in import duty structure and increase in relevant taxes have put significant stress on our business.

"We have absorbed a portion of the impacts but to retain business viability, we are forced to pass on a part of this burden to the consumers."

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In the Budget 2013-14, Finance Minister P Chidambaram had announced that basic customs duty on new passenger cars and other motor vehicles valued more than $40,000 and/or engine capacity over 3,000 cc for petrol and over 2,500 cc for diesel would be increased to 100 per cent from 75 per cent earlier.

Also, excise duty on SUVs was raised from 27 per cent to 30 per cent.