Mercedes-Benz India signaled price hike from January 2013. The prices on all the models of Mercedes-Benz will increase which will be effective from January 2013. This increase is the result of constant increase in the input costs and unfavorable exchange rates coupled with inflation. Mr. Eberhard Kern, Managing Director & CEO, Mercedes-Benz India commented, "Significant level of cost escalations has been absorbed by us till now, but beyond a point we cannot continue to sustain such levels. We have made substantial investment in our India operations and are responsible for the growth of our employees and dealer partners. We aim for a sustainable profitable growth maintaining our premium appeal and hence, we are going to substantially increase the prices of all Mercedes-Benz cars from January 2013."
Mercedes-Benz India has an investment of Rs 850 crores in its production facility in Chakan, Pune and its dealer partners have invested Rs. 480 crores made in its network. At present, Mercedes-Benz India has the densest network amongst any luxury car maker in India. It has 72 touchpoints across 31 cities. The company locally produces the C-Class, E-Class, S-Class sedans and started the local production of M-Class from October 2012. It produces 10,000 units annually. Mercedes-Benz India has also initiated the operations of its technologically advanced Paint Shop from October, which has a capacity of 20,000 units per annum.