Mercedes-Benz to raise prices in India on weak rupee

Last Updated: Thu, Aug 29, 2013 10:13 hrs

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 percent 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 percent year-to-date, driving up cost of imports, and forcing some carmakers to raise prices even as consumer spending shrinks.

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