Friday, March 15, 2013
By Anil Jangid
Mercedes Benz car price rise scheduled from April 1
This should happen and it will spread like a viral across the car market. The Union Budget proposals have made the luxury cars costlier and the impact of it will be felt from April 1. Following the compulsory price rise, once the number one luxury car maker Mercedes Benz will be increasing the price of its locally assembled cars by 1 percent to 4 percent starting next month. Right from the Mercedes Benz B Class to the costliest Mercedes Benz SLS AMG, the price of all the Mercedes cars will be increased. Notably, this rise in price is following the increase in duty on luxury cars. Where the locally produced models will have an increase in price up to 4 percent, the imported cars will have a price rise to the tune of 20 percent.
It is believed that other car makers such as Audi, BMW and others will also be declaring the price rise in the coming days and it is also said that a similar increase in price is also expected from them. The increase is following the additional tax burden on luxury cars. Experts believe that already the car market is slowing down and the price rise will be dampening the demand further. Already Mercedes Benz cars in India are facing slow demand whereas BMW and Audi cars are getting more popular and the price increase, to an extent, will be responsible for slowdown in sales.
The extent of damage will be gauged in the month of April. The sales ups and down in the month of April will also clarify how the luxury car buyers respond to the price rise of luxury cars. Informed sources predict that there will be little impact as already the luxury cars are selling well and Audi, BMW cars are selling well in the segment. Audi Q3 and BMW X1 are some of the best selling cars in the segment.