The Indian car market is still struggling with credit crunch and is far away from making a complete comeback to revival. In this time of financial meltdown, it has become difficult for car manufacturers to sustain in the uncertain market condition.

They are increasing prices across their respective car models to survive in the recession infected car market. Leading players like Maruti Suzuki, Toyota, General Motors, and Honda have already announced a hike in their car prices nullifying the discounts offered earlier in response to the excise benefits.

For a long time car manufacturers have absorbed significant level of cost escalation. But now, none of them are able to intake them depreciating their own profit margins. Even Mercedes-Benz is not able to face the challenge posed to the company’s margins and decided to raise prices of its entire car models available in the Indian market.

The decision to increase car prices is purely against an unavoidable pressure from the combined effect of global recession, fluctuating input prices, and adverse exchange rates.

Till now, the rate of hike has not been decided by the company but it’s confirmed that the increased prices will be effective from mid-February.