German luxury car maker Mercedes-Benz on 1st January said it will increase prices of all its models in the domestic market by up to 3% effective January 14th to offset the rising input costs and currency fluctuation.

"We will increase prices of our vehicles to the tune of 1-3% effective January 14th," Mercedes-Benz India MD and CEO Eberhard Kern said in a statement.

Rising input costs, volatility of the rupee-euro, high interest rates and other associated factors have put significant pressure on the company, he said, adding, "This has forced us to pass on a part of this burden to our customers".

The price of the B-class will be increased by 1%, for the C-class and E-class sedans it will be 1.5% while the S-class sedan price will go up by 3%, the company said.

While the M-class SUV will be dearer by 3%, the prices of the CBU range of vehicles comprising the CLS- class, SLK-class, R-class and the SLS AMG will also be increased by 1%.