Mercedes-Benz Announces Price Hike and Luxury Store Launch
CHENNAI: Mercedes-Benz India has announced that it will increase car prices for the third time this year in September, citing the adverse fluctuation of the Euro against the Indian Rupee. The company has already revised its prices by 1.5% in both January and June.
According to Santosh Iyer, MD-CEO of Mercedes-Benz India, the price increase is necessary due to the significant European content in their vehicles. “We had priced our cars when one Euro was at Rs 89-90. With the Euro going up, even though we localize more than 30% of our cars, 70% of the cars still have European content,” he explained.
Despite the price hike, Iyer remains optimistic about retail sales, thanks to the Reserve Bank of India’s interest rate cuts twice this year. “We have a non-banking finance company, Mercedes-Benz Finance, and this arm has also reduced the interest rates. About 80% of our cars are financed, and today, if you look at June, the price of cars has gone up, but the EMIs remain the same,” he said.
The company is also expanding its luxury experience with the launch of its 11th ‘Atelier’ store in Chennai. Iyer announced plans to open 19 more such showrooms in the next five months, which will offer upgraded infrastructure, technology, and an exclusive personalization corner to customers.
The ‘Atelier Experience’ allows discerning customers to configure their cars with a range of customization options. This move is part of Mercedes-Benz’s networking strategy to enhance customer experience and provide a more personalized service.
