 "Mercedes-Benz hikes prices by up to 4%")
India's second largest luxury car manufacturer Mercedes-Benz today announced a hike in prices across all its models with effect from 22-January, 2015.
The quantum of price increase would be up to 4%, varying across models.
The company cited the end of excise duty cut on 31-December, 2014 as the reason behind the price revision.
Eberhard Kern, managing director and chief executive, Mercedes-Benz India said, "The excise duty cut was of much relief to the automotive sector in general and luxury cars, in particular. However, the end of excise benefit left us with no option but to pass on the additional cost to our customers. We want to maintain our premium brand positioning in the market and sustain the strong foundation which we have created for the brand in India."
Though it is not officially announced yet but other two luxury car makers Audi and BMW are expected to follow suit.
Tata Motors-owned Jaguar Land Rover and Germany's Porsche may also announce a price hike in the coming days. The hike is expected to put pressure on demand for luxury cars.