Mercedes-Benz India to increase prices in September; marks the third increase this year – important reasons for – Times of India

New Delhi: Mercedes-Benz India will increase vehicle prices by 1-1.5% in September to compensate for the impact of the weakening rupid, said Managing Director and CEO Santosh Iyer.“There is another price increase in September, because of the euro. If you see it, the last month in the 100 Mark (INR) remained, and that has not changed. That is why we will also have to take an increase in September,” Iyer told PTI.The company, which leads the market for luxury cars from India, has already raised prizes twice this year, in January and July and the upcoming adjustment is expected to be between 1-1.5%.Regarding the problems with sales turnover, Iyer explained that reduced interest rates help to maintain balanced monthly EMIs for buyers. The company reports that 80% of their new vehicles are purchased through financing options.“So if you look at the EMIs, we have tried to keep the same, although the price of the car has risen. So that helps us to reduce the impact of the price increase to a large extent,” Iyer said.He expressed trust in the continuous market demand, which called economic growth as a engine for luxury car purchases. He noted that customers understand that price adjustments are needed due to currency fluctuations.Tackling worries about the supply chain, in particular with regard to rare earth magnets, Iyer stated: “If you look at the supply chain, with regard to us, we are not yet hit by one of these topics because we manage it properly. We also have enough stocks with us, so we can navigate and manage it “.“I think our colleagues back in Stuttgart (Germany) have managed it well, so we have no problems there,” he added.Iyer acknowledged that the growth of the company can remain flat this year due to constant geopolitical tensions and other challenges. While the total passenger vehicles market is growing by a modest 2-3%, the luxury car segment has brought slightly better growth by around 5-6%.“Of course one would love much higher growth rates, but given what is happening worldwide, I think the growth in the car industry in itself is a positive sign as such,” Iyer said.