The country’s leading luxury car maker Mercedes Benz India is expected to slash the price of its popular S Class sedan as the car’s engine will soon be assembled in the Indian market. Commercial vehicle maker Force Motors will be taking care of the engine manufacturing for the S Class sedan of Mercedes Benz.
The manufacturing of the Mercedes Benz S Class engine in the local market will help the company in reducing the overall cost of the vehicle considerably, which in turn will enable the company to slash its prices by a good margin. Force Motors is already assembling engines for popular Mercedes Benz cars like C Class and E Class. Both of these engines will be ready by the end of this year, enabling the car make to save duty.
The recent decision of government of the government of India of increasing the import duty on pre assembled cars to 30 percent from10 percent earlier has put a lot of strain on the luxury car makers in the country. Due to this, car makers are now forced to transfer the increased cost on buyers by enhancing the vehicle prices.
As per the company, it is currently bearing a loss of Rs 10 lakh on every unit of S Class sedan they are selling. Thus, the assembling of the engine in India itself will certainly bring relief for the car maker.
