Luxury car maker Mercedes-Benz will hike prices of its entire model range from April 1, 2013. There will be an increase of 1-4 per cent in the prices of locally assembled cars while select CBUs (Completely Built Units) will see a hike of 20% in the prices.

Eberhard Kern, Managing Director & CEO, Mercedes-Benz India commented on the price increase saying, “There are several factors that have put significant pressure on our bottomlines. Rising input costs and volatile exchange rates have impacted us; while the recent changes in import duty structure and increase in relevant taxes have put significant stress on our business. We have absorbed a portion of the impacts but to retain business viability, we are forced to pass on a part of this burden to the consumers.”

Mercedes last effected a price hike in January when it raised prices by 1-3 per cent. However, the second price hike comes in the aftermath of the 2013-14 Budget proposals which seek basic customs duty on new passenger cars and other imported vehicles to be increased to 100 per cent from 75 per cent previously.

Currently Mercedes-Benz assembles the C-Class, E-Class and S-Class sedans along with SUV M-Class at the Chakan plant in Pune, whereas the other models are mostly CBUs and will be drastically affected by the price hike. The SLS AMG is estimated to go up by almost Rs 58 lakh after the price hike comes into effect.