Mercedes to hike vehicle prices by up to Rs 5.4 lakh from January

New Delhi: Mercedes-Benz India will increase prices of its vehicles across all models by up to 2 percent from January 1, 2016, to offset rising input cost.

"The price increase would be up to 2 percent, varying across the model range. The rising input cost is instrumental in the price revision of Mercedes-Benz products," the company said in a statement.

The German carmaker sells a range of 24 models in India, starting with the A-Class, priced at Rs 27.5 lakh, going up to Rs 2.7 crore for the S63 AMG coupe (all prices ex-showroom, Delhi).

Commenting on the move, Mercedes-Benz India Managing Director & CEO Roland Folger said: "... With rising input costs, we are compelled to make some price adjustments to our product range to protect the investment of our customers in the brand, maintain our premium brand positioning in the market and sustain a profitable business."

He added that despite the price increase, customers can benefit from tailormade financial offerings from Mercedes-Benz like STAR Finance, STAR Agility, STAR Lease or Corporate STAR Lease to drive home their dream car.

The company has launched 14 products this year.

In the January-September 2015 period, its sales stood at 10,079 units, up 34 percent from the same period last year.

Last week, rival BMW had announced that it would increase the prices of its products by up to 3 percent from January.