German auto giant Mercedes-Benz has announced that it will hike prices of its entire product lineup in India by 2 percent, effective January 1, 2017.
Mercedes-Benz India said in a statement, "The rising inflation coupled with rising input costs and increasing forex rates have been exerting significant pressure on the bottom line."
The carmaker insists that owing to negative customer sentiments, the company has only passed on minimum offset cost on the customers. The German marque sells a range of products in India starting from the Rs 27 lakh A-Class to the Rs 2.6 crore Mercedes-Maybach S600.
Mercedes-Benz India MD Roland Folger said, "A steady rise in input costs against the backdrop of increasing forex rates and high inflationary cost together have eroded our bottom line.
"We were left with fewer options but to make some necessary price adjustments to our product range in order to protect the investment of our customers."
He added, "We, hence, decided to absorb a higher impact of these adversary factors on our price and pass a lesser part of it to customers, considering the current negative customer sentiment.
"We want to maintain a sustainable business in this dynamic market and want to retain our premium brand positioning."
Along with Mercedes, several other manufacturers including Hyundai, Nissan, Toyota Kirloskar and Renault has also made a decision to increase prices from January.
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