"The end of excise duty cut on December 31, 2014 was instrumental in the price revision of Mercedes-Benz products," the company said in a statement.
Mercedes-Benz sells a range of products in India – from luxury hatchback A-Class priced at Rs 26 lakh to sedan S 500 priced at Rs 1.44 crore (both ex-showroom Delhi).
Besides, it also sells the AMG range - starting with CLA 45 AMG at Rs 68.5 lakh to G63 AMG priced at Rs 1.8 crore.
Commenting on the price hike, Mercedes-Benz India Managing Director & CEO Eberhard Kern said: "The excise duty cut was of much relief to the automotive sector in general and luxury cars, in particular.

However, the end of excise benefit left us with no option but to pass on the additional cost to our customers."
Despite the price hike, the company would work to make it easier for customers to buy its products through financial solutions from Mercedes-Benz Financial Services, he said.
"One of the new highlight offerings will be the unmatched interest rate of 9.99 percent for new generation cars customers," Kern added.
In December, rival BMW had announced raising product prices in India by up to 5 percent with effect from first week of January.
Last week, major car makers, including Maruti Suzuki, Hyundai, GM India and Honda had raised vehicle prices by up to Rs 1.27 lakh, days after the government decided against continuing with lower excise duty beyond December 31.