The weakening of the Indian currency compared to the euro since the past six to seven months, combined with an increase in input costs have been exerting significant pressure on the overall operations, India’s largest luxury carmakers said.
With the average exchange rate of rupee for euro going up from Rs 79 in February to Rs 87 in August, the company’s input costs have gone up.
Martin Schwenk, Managing Director & CEO, Mercedes-Benz India said, “As the leading luxury car maker in India, it remains our endeavor to offer the latest products, best of technologies, service offering and ownership experience to our customers. However, the weakening of the currency since the beginning of the year, combined with a sharp increase in the input costs have been a matter of concern, creating significant pressure on our bottom line. To offset these costs and drive a sustainable business, we have few options but to make some nominal yet necessary price adjustments. We as a customer centric brand will be absorbing most of the impact, however passing on a portion of it up to 2%, seems inevitable.”
Currently, Mercedes-Benz India sells a range of luxury vehicles starting from the C-Class priced at Rs 41 lakh (ex-showroom) to AMG GT Coupe tagged at Rs 2.5 crore (ex-showroom).
The German carmaker is also planning to bring in its first electric SUV EQC in India during the festive season.