INDIA: Mercedes-Benz latest to mull price rises
Mercedes-Benz may have to raise prices in India because of the weakening rupee, which declined by more than 10% in the past month to trade at an all-time low of 60 against the US dollar.
If it raises prices it will be the latest in a line of OEMs who have increased car prices in India due to cost pressures.
Mercedes Benz India managing director and CEO Eberhard H Kern told PTI, "The rupee lost around 10% since last month against the euro and the dollar. For the time being we are safe. We follow a long-term hedging strategy. But if the rupee stays at this weak level, we have to look at our pricing... If you import your kits, parts or cars in euros or dollars and sell in rupees, there is pressure on pricing. Hedging does not last forever."
Kern also said the automaker intended to invest in expansion of its manufacturing plant at Chakan, Pune.
"We are investing an additional INR2.5bn (US$41.9m) into our production facility to double the capacity by next year. Today we have a capacity of 10,000 units a year, and from next year the available capacity will be 20,000 units," he said.
"[High interest rates are] hurting the overall auto industry, [but] Mercedes Benz belongs to a different class and will not [be affected]," added Kern.
This QUBE report from just-auto provides a comprehensive overview of the global electrified vehicles sector, major OEM developments, top 14 markets, technology trends and market projections. Use this ...
This QUBE report from just-auto provides a comprehensive overview of the global automotive safety systems sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this...
It is estimated that the average car has around 80 electric motors - many due to motorists' insatiable demand for greater comfort and convenience. In a top-range Mercedes-Benz, for example, there are ...
Colombia Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive in...
Daimler is reportedly considering installing a new manufacturing plant in North America....
- ANALYSIS: Making sense of China's sales volatility
- THE WEEK THAT WAS: Toyota's FCV cometh
- ANALYSIS: Kia 'thinks globally, acts locally'
- Kia UK MD on how to raise brand pricing
- VA: Minnow Mitsubishi not short on L200 claims
- Mitsubishi ending US production
- FCA to recall 1,060,531 Ram trucks
- JCI confirms auto exit as supplier eddies swirl
- FRANKFURT DEBUTS LIST: Ferrari 488 Spider added
- Fiat Chrysler cops record penalty from NHTSA
- Global vehicle lightweighting - technology, trends and the future
- Global light vehicle engine technologies market- forecasts to 2030
- Global light vehicle steering market- forecasts to 2030
- Global light vehicle OE tyres market- forecasts to 2030
- Global light vehicle OE wheels market- forecasts to 2030