Maruti Suzuki India Ltd (MSIL) has announced an upward price change for its models from 16 August, 2018, owing to increase in commodity and distribution costs, and adverse foreign exchange rates. On similar lines, Mercedes-Benz India Ltd (MBIL) also announced the revision of ex-showroom prices of its entire model range by up to 4 %, effective 1 September, 2018. MBIL has credited a combination of factors comprising of rising input costs, increasing inflation and an upward moving forex rate to have compelled this price correction.
In the case of MSIL, the price change varies across models and is up to Rs 6,100 (ex-showroom Delhi). Meanwhile, the German automaker said that while the rupee has depreciated by over 5 % against the Euro in the last eight months, the Repo rate has gone up by 0.5 % in last couple of months. The combination of all these factors led Mercedes-Benz India to upwardly revise the prices of its entire model range and also the retail finance rates.
Roland Folger, Managing Director and CEO, MBIL, said a steady rise in input costs against the backdrop of an unfavourable forex rate and high inflationary cost together, have had a significant impact in the recent past. Considering the rapid depreciation of the rupee against the major currencies in last few days, MBIL was left with fewer options, but to make some necessary price adjustments, he added.