Mercedes to hike prices as rupee stings - Times of India

The author has posted comments on this articleM Allirajan, TNN | Aug 10, 2013, 01.18AM IST COIMBATORE: Even as it is seeing a robust increase in sales on the back of new product launches, Mercedes-Benz India is all set to increase prices on its models to offset the impact of rupee depreciation. "It (price hike) is inevitable. We can't cover (rupee depreciation) and part of it (increase) would have to be passed on to customers," said Eberhard Kern, managing director and CEO, Mercedes-Benz India. The company would take a call on the hike and the quantum within the next few weeks. This co mes close on the heels of other German luxury carmakers BMW and Audi announcing 4%-5% increase in prices. "We are still hedged (on the forex front). But hedging is not forever," Kern, who unveiled E-63 AMG at Sundaram Motors, the authorised dealer for Mercedes-Benz here, said on Friday. The rupee has tumbled by about 12% since the beginning of May. The luxury carmaker has recorded a 22% year-on-year (y-o-y) growth in sales in January-July even as it unveiled six new products for the Indian market. It registered a 50% y-o-y sales growth in July alone. This is in sharp contrast to the market for regular mass market cars that declined 5% in January-June and continue to face poor demand. The newly launched A-class has received 400 bookings in just 10 days, which the company says is a record. Mercedes-Benz, which is doubling capacity at its Pune assembly facility to 20,000 units a year at an investment of Rs 250 crore, expects to post double-digit growth in 2013. The company's growth remained flat in 2012 when it sold 7,138 units. The ramping up of capacity would be completed in 2014. "We are getting future-ready. India is on our strategic roadmap and is one of the strategic markets," Kern said. Bookings for the newly-launched GL class luxury SUV (sports utility vehicle) has been good and the diesel version of the B-class has a two-month waiting list, he said. While sedans will continue to be an important part of Mercedes-Benz's product portfolio, SUVs and compact cars will grow and expand, he said. The luxury car segment, which accounted for just 1.2% of the overall market for cars in 2012, would grow to 4% by 2020 when the Indian market is expected to produce 7 million cars, Kern said. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHMkUWhEVBuaIuw1uBK4BqE6BXHcQ&url=http://timesofindia.indiatimes.com/business/india-business/Mercedes-to-hike-prices-as-rupee-stings/articleshow/21735578.cms

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