Mercedes-Benz to raise prices on weak rupee

 

Daimler AG's Mercedes-Benz on Thursday joined its German rivals Audi and BMW in raising prices of its luxury cars in India as a depreciating rupee and rising inputs costs pressured margins.

 

Mercedes-Benz said it would raise prices by between 2.5 and 4.5% from September 1 across its range of vehicles in India.

 

"Exchange rate effects, higher import duties and rising input costs coupled with a host of other unfavorable factors like higher interest rates has been impacting the bottomlines," the company said in a statement.

 

The rupee has fallen 19% year-to-date, driving up cost of imports, and forcing some carmakers to raise prices even as consumer spending shrinks.