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Old 19th January 2009, 20:20   #1
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Default Now Mercedes All set to hike prices.

Mercedes-Benz India may hike price from Feb 2009- Automobiles-Auto-News By Industry-News-The Economic Times


MUMBAI: Mercedes-Benz India on Thursday indicated that prices of all its models will be revised upwards from mid-February 2009

Fluctuating input prices and adverse exchange rates have posed severe challenges for the margins of the company, it said in a statement issued here.

We have absorbed significant levels of cost escalation--but cannot continue to sustain such levels beyond a point, Mercedes-Benz India's Managing Director and CEO, Wilfried Aulbur, said.

"We are going to increase prices of all Mercedes-Benz cars from mid-February 2009," Aulbur said.


First toyota and now Mercedes, whose next ?
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Old 20th January 2009, 11:46   #2
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Already over-priced, and will only get worse. Get this, you could buy a new E-Class for 23 lakhs in 1997. In 2006, the C-Class cost 33 lakhs on the road while the E Class was in the 45 lakh rupee bracket. Mercedes & BMW make massive profits on each car sold. I personally don't think this is a good move in consideration of the economically-challenged times.

What M-Benz should do instead is offer a competitive 5 year service / warranty coverage (a la BMW). That would be a true deal-clincher! The upkeep of German cars is a deterrent to many a potential owner.
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Old 20th January 2009, 12:12   #3
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I think the Indians see stars when they gaze upon the 3-star emblem. MB is just cashing-in on that phenomenon.

Even here - MB holds a special value for us, I'm not sure why. I think its because many Indians have grown up with an almost magical affection for hte brand. Kudos to Mercedes' marketing departments of the past!

I am very non-confrontational. Yet I had an Indian challenge me to a road-race because he just bought an SLK. I bowed out - only to find that his car wsn't even an AMG. It's just sad :(

No offense to anyone - but I'm NEVER buying an MB because I think it'd make me look like an ignorant egomaniac.
(Unless its a 190E Cosworth 16V, or an SL6x Black, or any Brabus - debadged of course )



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Already over-priced, and will only get worse. Get this, you could buy a new E-Class for 23 lakhs in 1997. In 2006, the C-Class cost 33 lakhs on the road while the E Class was in the 45 lakh rupee bracket. Mercedes & BMW make massive profits on each car sold. I personally don't think this is a good move in consideration of the economically-challenged times.

What M-Benz should do instead is offer a competitive 5 year service / warranty coverage (a la BMW). That would be a true deal-clincher! The upkeep of German cars is a deterrent to many a potential owner.
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Old 20th January 2009, 12:18   #4
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Already over-priced, and will only get worse. Get this, you could buy a new E-Class for 23 lakhs in 1997. In 2006, the C-Class cost 33 lakhs on the road while the E Class was in the 45 lakh rupee bracket. Mercedes & BMW make massive profits on each car sold. I personally don't think this is a good move in consideration of the economically-challenged times.

What M-Benz should do instead is offer a competitive 5 year service / warranty coverage (a la BMW). That would be a true deal-clincher! The upkeep of German cars is a deterrent to many a potential owner.

Yep i exactly remember that, it was when my dad purchased the E Class for 23-25 Lakhs, dont remember the exact figure.
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Old 21st January 2009, 12:27   #5
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Originally Posted by Atlblkz06 View Post
I think the Indians see stars when they gaze upon the 3-star emblem. MB is just cashing-in on that phenomenon. Even here - MB holds a special value for us, I'm not sure why. I think its because many Indians have grown up with an almost magical affection for hte brand.
Well, the three-pointed star packs massive appeal in markets / cultures around the world. You can't exactly narrow it down to Indian taste per se. For instance, Mercedes is second-last on the JD reliability survey and still sells in very respectable numbers in the States.

From the Indian context, BMW has caught up within 90% of Mercedes sales in only 2 - 3 years of full fledged operations. They are close. And may overtake Mercedes sooner rather than later, unless Benz replies with newer products, 5 year service packages and competitive prices.

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Kudos to Mercedes' marketing departments of the past!
Undoubtedly. But the cars of the past had an equal role in building their reputation.
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Old 21st January 2009, 12:39   #6
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Already over-priced, and will only get worse. I personally don't think this is a good move in consideration of the economically-challenged times.
May be Germany is fighting against recession by milking Indians. (MB, BMW)
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Old 21st January 2009, 12:47   #7
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There might be some room to hike prices of the C-class and S-class (depending on what price the 7 series launches at)
But hiking prices on the E is shooting yourself in the foot.
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Old 21st January 2009, 16:30   #8
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There might be some room to hike prices of the C-class
No ways! The C runs well over 30 lakhs already. That's a lot of money for what is a pretty compact sedan. Plus, the current pricing is dangerously close to the E-Class.
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Old 21st January 2009, 17:05   #9
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All car manufacturers are rising their car prices. But I think if luxury car manufacturers like Audi and Mercedes hike the car prices, people wont buy their cars. As it these are expensive cars and can be afforded by only affluent class in the society.
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Old 21st January 2009, 20:54   #10
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All car manufacturers are rising their car prices. But I think if luxury car manufacturers like Audi and Mercedes hike the car prices, people wont buy their cars. As it these are expensive cars and can be afforded by only affluent class in the society.
I see a paradox in what you just wrote. The way I see it, it is precisely because it takes a buyer with a certain level of income / assets to buy such a car that the demand is relatively price inelastic.
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Old 21st January 2009, 21:02   #11
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yes...if one can easily afford to shell out 50 lakhs for a car, what difference would an increase of around 5 lakhs make?
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Old 21st January 2009, 21:32   #12
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Wasn't MB offering a Rs7K discount on the E-class sometime last month?
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Old 22nd January 2009, 09:50   #13
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Wasn't MB offering a Rs7K discount on the E-class sometime last month?
It was 7L, i think. Just think about their profit margin
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Old 23rd January 2009, 09:50   #14
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It was 7L, i think. Just think about their profit margin
Well, yeah this is what GTO was referring to. 10 years ago, E Class was on sale for around RS 24 Lakhs. Now the E Class sells for around 40 Lakhs ( No Discounts), If you think about it, the rates should atleast stay stable, if not come down.

Also, does anyone have any idea, how much % of the E class or the C Class is imported?

I think S Class is a comple CBU.
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Old 23rd January 2009, 11:30   #15
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I think S Class is a comple CBU.
i think 350s and 32 cdis are CKD and others like 500s and cars with options like panoramic roofs are CBU.
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