Mercedes-Benz India to raise prices again in September, amid exchange rate fluctuations: MD Santosh Iyer
Mercedes-Benz India will increase prices of its models by 1% to 1.5% in September, its third for the year, amid exchange rate fluctuations, said its Managing Director and CEO Santosh Iyer.
The German luxury maker also reiterated its earlier forecast of flat to single digit growth in India for 2025, amid exchange rates and geopolitical concerns.
'We have increased our prices in the range of 1-1.5% each in January and June. We have priced our cars for the rupee-euro exchange to be in the range 89-90. Now it has breached the 98 mark for the first time. 70% of our models have European content and therefore when the euro goes up the price of the models will go up,' Mr. Iyer said in a media interaction.
He was in Chennai for the inauguration of the Mercedes-Benz 'Atelier Experience' showroom from Sundaram Motors at Adyar in Chennai. Mercedes-Benz also launched itd EQS580 'Celebration Edition'.
'We cannot pass on the entire shock of price hikes to customers in one go. We have to do it in a phased manner. The price increase will have an impact on demand. That is why we have guided for flat to single-digit growth in 2025,' Mr. Iyer said.
He also said the repo rate cut by the Reserve Bank of India is a welcome step and would help increase demand.
'80% of our cars are bought on finance. Banks and our own financial arm have passed on the rate cuts. Despite the price increases, the EMIs have remained the same due to the rate cuts. The rate cuts increase demand for housing. Construction sector is one of the key segments for the luxury car market,' Mr. Iyer said.
He also pointed out that Mercedes-Benz has outpaced the market in terms of luxury car electric vehicle sales, driven by its top-end models.
'When you look at the combustion engine models there is a 48% GST and 20% road tax. Whereas in case EVs the GST is 5% and most States have exempted road tax and some have given 50% waiver on road tax. So some customers are seeing the benefits of buying an EV model,' Mr. Iyer said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
13 minutes ago
- Mint
TCS, Infosys see slowdown in large accounts
Tata Consultancy Services Ltd and Infosys Ltd clocked less business from a few of their marquee clients last year as global uncertainties rose, potentially slowing growth at two of India's largest IT services companies. TCS got less business from Citigroup Inc. and Postbank, a subsidiary of Deutsche Bank AG, last year as compared with FY24. Both Citibank and Deutsche Bank are among the 30 largest clients of the Mumbai-based IT outsourcer, according to an executive privy to the matter. Second-largest IT services firm Infosys got less business from German automotive company, Daimler AG. The trend of large accounts giving less business, which shows up in annual filings and analysts' findings, mirrors the scene at smaller IT firms. Hexaware Technologies Ltd is expected to get less business from Fannie Mae, one of its three largest accounts, this year, Mint reported on 9 June. Mphasis Ltd lost a chunk of its business with FedEx to Accenture Plc, while Microsoft reduced the business it gave to LTIMindtree Ltd and Sonata Software Ltd. Emails sent to TCS and Infosys went unanswered. Also read | TCS revenue from Tata Group companies nears $1 billion Less revenue from Citibank, which is among its top five accounts, might have caused TCS's E-Serve subsidiary to report a revenue decline in FY25. The subsidiary was formed when TCS acquired Citi's India-based back-end centre in FY09. Its revenue in FY25 declined 31% year-on-year to $155 million. To be sure, revenue from this subsidiary has been falling for two consecutive years. 'While the absolute revenue of the subsidiary is not significant in the context of overall TCS revenue, it is worth noting that the revenue decline (of the subsidiary) stems from a single client. The entire year-on-year revenue decline is driven by the top account revenue shrinking to $27 million from $96 million in the prior year," said Kotak Institutional Equities analysts Kawaljeet Saluja, Sathishkumar S., and Vamshi Krishna, in a note dated 2 June. Mint could not independently ascertain the reasons behind the lower business from Citibank. A similar decline was reported in TCS's German subsidiary, TCS Tech Solutions GmBH, which was acquired by TCS on 1 January 2021 from Deutsche Bank. The subsidiary's revenue declined 33% on a yearly basis to 126 million euros (approximately $136 million). The subsidiary's revenue has been declining for two consecutive years. Read this | Tata Sons feels the heat as TCS shrinks dividend for the first time in 20 years 'The decline was due to lower revenue from the Deutsche Bank account due to the ramp-down of the Postbank engagement," said the Kotak analysts. Deutsche Bank had acquired Postbank in 2008. Deutsche Bank announced in November 2023 that it would shut almost half of the 550 branches of Postbank over the next two years as its customers preferred online banking. TCS bought Postbank Systems AG, the IT firm of Postbank, in November 2020, in order to increase its business with its German client. Postbank Systems rebranded as TCS Technology Solutions AG in January 2021 and about 80% of the subsidiary's revenue came from Postbank. Mint had reported in November 2023 that revenue from Postbank would decline to $130 million by 2025. For now, revenue from banks and financial institutions makes up almost a third of the company's overall revenue. TCS revenue in FY25 grew 3.78% annually to $30.18 billion, its slowest revenue growth in four years. Also read | Accenture and Infosys have beaten TCS. What is N. Chandrasekaran planning? However, TCS was not the only company getting a smaller bite of the pie. Bengaluru-based Infosys missed out too. Revenue of Infosys Automotive and Mobility GmbH, which is its subsidiary for the Daimler project, declined for the first time. The company got $418 million from the subsidiary, down 8.5% on a yearly basis. Notably, the revenue decline from the subsidiary comes after two consecutive years of growth exceeding 40%. 'If there is a revenue decline in the subsidiary, it clearly means that revenue from the Daimler account has reached its peak and matured," said JM Financial analysts, Abhishek Kumar and Nandan Arekal, in a note dated 16 June. Notably, the subsidiary has not been all that profitable for Infosys, as it has been incurring losses for four consecutive years. Infosys inked an eight-year contract with Daimler in December 2020 that would bring it more than $3 billion in business. This was one of chief executive Salil Parekh's largest deals since he took over as chief executive officer in January 2018. Read this | Cognizant and Infosys are tapping a new trend in IT deals to combat tough times Infosys reported $19.28 billion in revenue, up 3.85% on a yearly basis. Infosys is eyeing an early extension of the eight-year contract with the German automobile company, which includes an AI component, a person aware of the matter said. The decline in revenue from marquee clients for TCS and Infosys also comes at a time when both companies are struggling to bag mega deals, or those valued at over $1 billion in contract value.
Economic Times
an hour ago
- Economic Times
FPIs push for extended license tenure and CAS in India
For instance, offshore funds that are not directly registered with their domestic regulators but are deemed to be regulated through their registered advisors/managers, should be allowed exemption from additional disclosure norms." Foreign portfolio investors are requesting Sebi to extend their license tenure to five years and introduce a closing auction session for more accurate closing prices. They also seek exemptions from granular disclosures for large private funds and a review of the threshold for revealing the identities of ultimate beneficial owners. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Several foreign portfolio investors (FPIs) have urged the Indian capital market regulator to increase the tenure of their licence from 3 to 5 years, introduce closing auction session (CAS) which exists in some of the leading markets, spare large private funds from granular disclosures, and review the threshold that triggers the rule to reveal the identities of the last natural persons behind the entities that invest in the three years offshore funds have to pay a fee and share necessary details to renew their registration with the Securities & Exchange Board of India (Sebi) and trade on the Indian stock exchanges. Given the stricter disclosure regime and the requirement to quickly inform the regulator of all material changes, fund managers and administrators feel that the renewal period should be increased to at least 5 funds have also put across their views to bring in CAS, which is held after the regular trading hours, to arrive at more representative closing prices for actively traded securities and thus reduce the tracking error for passive funds whose portfolios mirror the not fool-proof, CAS is generally considered a more accurate mechanism than the volume-weighted average price (VWAP) for calculating the closing prices based on the last 30-minute trades. CAS exists in the US, Japan, Hong Kong, and some of the European markets. Last year, Sebi released a consultation paper on VWAP, an odd trade in the last 30 minutes can cause a mismatch between the performance of a fund (whose net asset value or NAV is calculated based on the trade price) and the market's performance based on the closing price (which may end up higher due to a large single trade). Compared with VWAP, the price at which the maximum number of shares of a scrip is traded during CAS is taken as the closing price. The latter, considered less volatile, is not influenced by some large freak trade shortly before the closing the Sebi disclosure norms, FPIs holding more than 50% of their Indian equity assets under management (AUM) in a single Indian corporate group, or funds that individually, or along with their investor group, hold more than ₹50,000 crore of equity AUM in the Indian markets, are required to disclose the last natural persons of all investors in the funds. However, FPIs such as sovereign wealth funds, public retail funds, and certain pooled investment vehicles among a few others are exempted from additional of the FPIs in the meeting had said that large private funds should also be freed from extra disclosures. According to Rajesh Gandhi, partner at Deloitte India, "An exemption from providing granular details could be considered for non-retail funds which have a wide investor base similar to the erstwhile broad-based fund concept."Sharing the view, Richie Sancheti, founder of the law firm Richie Sancheti Associates, said, "If a fund is under credible regulatory supervision and has a wide investor pool, the risk of it being a front for one entity is low. Sebi's own SOP (standard operating procedure) acknowledges this by exempting certain regulated pooled vehicles. Extending this logic, a well-regulated, broadly held private fund could justifiably be given leeway, too. These funds share many characteristics with exempt public funds (wide investor base, regulated status of the fund manager)."About the other ask from FPIs for a longer validity in renewal cycle, he said the core information that funds must provide at renewal (ownership structure, jurisdiction, etc.,) doesn't typically change drastically in three years-and if it does, regulations require prompt updating of material changes. The savings on regulatory bandwidth and ease-of-doing-business could also help reinforce the image as a well-regulated yet investor-friendly market, said advisors and intermediaries believe that while the regulator would probably be reluctant in relaxing the 50% threshold criteria for extra disclosures, allowing a longer renewal cycle could be more feasible. According to Prakhar Dua, principal (funds, asset management and regulatory practice) at IC Universal Legal, "While Sebi's objective to prevent violation of the minimum public shareholding is well appreciated, it should provide some flexibility on the concentration criterion. For instance, offshore funds that are not directly registered with their domestic regulators but are deemed to be regulated through their registered advisors/managers, should be allowed exemption from additional disclosure norms."
Time of India
an hour ago
- Time of India
FPIs push for extended license tenure and CAS in India
Mumbai: Several foreign portfolio investors (FPIs) have urged the Indian capital market regulator to increase the tenure of their licence from 3 to 5 years, introduce closing auction session (CAS) which exists in some of the leading markets, spare large private funds from granular disclosures, and review the threshold that triggers the rule to reveal the identities of the last natural persons behind the entities that invest in the funds. Disclosure Regime by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Access all TV channels anywhere, anytime Techno Mag Learn More Undo Every three years offshore funds have to pay a fee and share necessary details to renew their registration with the Securities & Exchange Board of India (Sebi) and trade on the Indian stock exchanges. Given the stricter disclosure regime and the requirement to quickly inform the regulator of all material changes, fund managers and administrators feel that the renewal period should be increased to at least 5 years. The funds have also put across their views to bring in CAS, which is held after the regular trading hours, to arrive at more representative closing prices for actively traded securities and thus reduce the tracking error for passive funds whose portfolios mirror the indices. Although not fool-proof, CAS is generally considered a more accurate mechanism than the volume-weighted average price (VWAP) for calculating the closing prices based on the last 30-minute trades. CAS exists in the US, Japan, Hong Kong, and some of the European markets. Last year, Sebi released a consultation paper on CAS. Live Events In VWAP, an odd trade in the last 30 minutes can cause a mismatch between the performance of a fund (whose net asset value or NAV is calculated based on the trade price) and the market's performance based on the closing price (which may end up higher due to a large single trade). Compared with VWAP, the price at which the maximum number of shares of a scrip is traded during CAS is taken as the closing price. The latter, considered less volatile, is not influenced by some large freak trade shortly before the closing bell. Agencies Under the Sebi disclosure norms, FPIs holding more than 50% of their Indian equity assets under management (AUM) in a single Indian corporate group, or funds that individually, or along with their investor group, hold more than ₹50,000 crore of equity AUM in the Indian markets, are required to disclose the last natural persons of all investors in the funds. However, FPIs such as sovereign wealth funds, public retail funds, and certain pooled investment vehicles among a few others are exempted from additional disclosures. Some of the FPIs in the meeting had said that large private funds should also be freed from extra disclosures. According to Rajesh Gandhi, partner at Deloitte India, "An exemption from providing granular details could be considered for non-retail funds which have a wide investor base similar to the erstwhile broad-based fund concept." Sharing the view, Richie Sancheti, founder of the law firm Richie Sancheti Associates, said, "If a fund is under credible regulatory supervision and has a wide investor pool, the risk of it being a front for one entity is low. Sebi's own SOP (standard operating procedure) acknowledges this by exempting certain regulated pooled vehicles. Extending this logic, a well-regulated, broadly held private fund could justifiably be given leeway, too. These funds share many characteristics with exempt public funds (wide investor base, regulated status of the fund manager)." Other Requests About the other ask from FPIs for a longer validity in renewal cycle, he said the core information that funds must provide at renewal (ownership structure, jurisdiction, etc.,) doesn't typically change drastically in three years-and if it does, regulations require prompt updating of material changes. The savings on regulatory bandwidth and ease-of-doing-business could also help reinforce the image as a well-regulated yet investor-friendly market, said Sancheti. Fund advisors and intermediaries believe that while the regulator would probably be reluctant in relaxing the 50% threshold criteria for extra disclosures, allowing a longer renewal cycle could be more feasible. According to Prakhar Dua, principal (funds, asset management and regulatory practice) at IC Universal Legal, "While Sebi's objective to prevent violation of the minimum public shareholding is well appreciated, it should provide some flexibility on the concentration criterion. For instance, offshore funds that are not directly registered with their domestic regulators but are deemed to be regulated through their registered advisors/managers, should be allowed exemption from additional disclosure norms."
