Mercedes-Benz and Audi to raise vehicle prices
With the increased input costs implemented on the vehicles, Mercedes Benz, the German luxury carmaker has intended to jack up prices of its automobiles by Rs. 90,000 to Rs. 5.5 Lakhs in August. The price increase is expected up to 3% on account of a rise in customs duties on automotive parts, along with a hike in excise duty and tax raise on fuel.
As the budget proposal of increased input costs has hit the automotive brands in the country, the German manufacturer is left with fewer options for making adjustments to the product range. It will be interesting to watch how Mercedes will assist their customers with affordable prices to offset the impact of rising input costs.
Furthermore, another German car manufacturer, Audi which is owned by the Volkswagen Group has also shown interest on a price hike by September. Both the companies are major dealers of luxury car segments in India.
As per the Budget 2019, the customs duty on imported luxury cars with a seating capacity of 10 people will be raised to 30% against its former figure of 25%. Along with that, the auto parts such as the windscreen, wipers, defrosters, beam lamp units, fuel filters, sound systems, horns, glass mirrors, etc will also receive a raise from 2.5% to 7.5%.
This year has already been harsh for the brands as they have been under the constant pressure of declining sales and now, it will be interesting to watch how the companies manage to increase the prices in such a time.
Sarthak Moghe is a young, enthusiastic writer who loves modern technology and automobiles. After completing his graduation in Journalism and Mass-Communication, he stepped into the world of adulting as a content writer. When not busy on the keyboard, he likes to explore new topics and hone his sense of humour.