German luxury car maker Mercedes-Benz on Tuesday said it will hike prices of its vehicles in India from January to offset cost escalations.
"A constant increase in input costs and unfavourable exchange rates coupled with inflation has posed severe strain on margins," Mercedes-Benz India said in a statement.
The company, however, did not specify the quantum of the proposed price hike.
"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 managing director & CEO Eberhard Kern said.
Mercedes-Benz India sells a range of luxury vehicles, including the B Class, C-Class, E-Class, S-Class, M-Class and the GL class with prices starting at Rs 21.9 lakh (2.19 million) and going to Rs 1.07 crore, or 10.7 million, (ex showroom Delhi).
Audi, one of its major competitors in the segment, has already announced similar plans to hike prices from January, while other carmakers such as Maruti Suzuki India, Toyota Kirloskar Motor and General Motor India have said they would hike prices from January.
Similarly, Honda Cars India, Volkswagen and Nissan are also considering such a move.