Mercedes-Benz Australia follows BMW in increasing prices in Australia for 2021

Mercedes-Benz has increased the price of some of its models in Australia by over $10,000 since 2019, with the latest cost hikes coming just days after key rival BMW quietly released its own upward pricing alterations.

The latest round of price increases impact several variants and body styles for the A-Class small car and C-Class midsizer along with some variants of the medium-sized GLC SUV.

A spokesperson from Mercedes-Benz told Chasing Cars that currency factors were responsible for the price bumps.

“Although we can’t comment in specific detail about how vehicle pricing is determined, we can confirm price increases have been made across various Mercedes-Benz models to adjust for changes including exchange rate instability,” they said.

“Pricing and specification of each vehicle variant is adjusted individually and affected by different factors.”

The increases capture popular models like the Mercedes-Benz C 200 sedan, which is now priced at $66,300 (around $72,600 driveaway) after a $500 increase in October – but the C 200 cost just $63,400 in early 2019.

Buyers opting for the C300 convertible will now have to fork out $112,300 (around $121,800 driveaway), after a $6,464 increase in October – or a full $10,400 more expensive than when it was launched in Australia in 2019.

Meanwhile, the entry-level A180 sedan received a small increase of $500 last month, which ups the price to $46,700 (about $51,000 driveaway), and is $1,800 more expensive than it was in January of this year.

The price adjustments on the entry-level Mercedes-Benz product follows arch-rival BMW’s own price increase on its 1 Series and 2 Series small cars, making Bavaria’s entry-level 118i ($46,990 before on-road costs) and 218i Gran Coupe ($50,990 before on road costs) slightly more expensive than the A-Class.

Mercedes-Benz also made some small changes to its GLC 300 SUV, which received a $2,165 increase in October and now costs $81,500, while opting for the plug-in hybrid GLC 300e will cost $86,300 after a $3,412 price hike last month.

The price increases come as Mercedes-Benz looks to restore stability during a tough year impacted drastically by the COVID-19 crisis. Compared to this time in 2019, Mercedes-Benz has sold 9.8 percent fewer cars.

In the same period, there has been considerable instability in the value of the Australian dollar compared to the Euro – the home currency of German and other European car manufacturers.