Dec 12 (Reuters) - Mercedes-Benz's India unit will increase the price of its cars by up to 2% starting January due to rising raw material and logistics costs, the luxury carmaker said on Friday. The
Mercedes-Benz India Announces Car Price Increase Due to Costs
Dec 12 (Reuters) - Mercedes-Benz's India unit will increase the price of its cars by up to 2% starting January due to rising raw material and logistics costs, the luxury carmaker said on Friday.
The company said that the euro-rupee exchange rate has traded persistently above the 100 rupee ($1.11) mark this year, increasing operational costs.
The prolonged volatility "affects every aspect of our operations, from imported components for local production, to completely built units," Santosh Iyer, Mercedes-Benz India's MD and CEO said in a statement.
The company said it is considering further quarterly price adjustments to better align with current foreign exchange rates. It added that it is absorbing a majority of cost pressures and passing a nominal portion to customers.
Mercedes leads sales of luxury vehicles in India, followed by BMW and Tata Motors Passenger Vehicles-owned Jaguar Land Rover (JLR).
($1 = 90.3400 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Harikrishnan Nair)
