Are Mercedes cheaper in Germany?

                                                    

This article will answer the following questions: Are Mercedes Benz Cheaper to buy in Germany? What is the European drive program? And where Mercedes Benz cars are made?

Is Mercedes Benz cheaper in Germany?

No, Mercedes Benz is not cheaper in Germany. It makes sense to assume that  Mercedes Benz cars are cheaper in Germany since they are manufactured there. However, cars sold in Germany are different in the specification when compared to the rest of the world. They offer more equipment and option extra in the standard model.

The Mercedes Benz S class available for sale in Germany will have more features and an advanced driver assistance system than the S class sold in the USA. This can be due to various legal regulations related to imported cars in the USA. 

Similarly, in countries like India, the government levies 60 to 100 per cent import tax on imported cars. Even if you buy a Mercedes Benz in Germany, the tax will be collected at the time of customs clearance and registration of the vehicle and the total expenditure will be almost similar to purchasing the car in a local dealership in India.

Let’s take the price of the 2022 Mercedes Benz S class into consideration. In Germany, the S class will set you back around €106,998.40 (120,000 USD)but in the USA it costs somewhere around 100,000 USD. while in India it costs 2 corer (approx 265,000 USD). The price variation is due to the import taxes and vehicle equipment.

Therefore, for markets like India where Import tax is very high, Mercedes Benz has assembly factories. Cars are assembled with the help of Completely knocked down kits and a few localised parts to keep the ex-showroom price low. 

In certain situations, it can be cheaper to buy used Mercedes Benz cars in Germany. Mercedes Benz cars are very reliable and can last more than 10 years. The cost of used or pre-owned cars in Germany are less expensive when compared to the rest of the world.

This is due to the customer buyback programs that are exclusive to the German market and the availability of newer models. In Germany, few customers also get additional discounts if they are upgrading to a higher spec model than their current Mercedes.

Where are Mercedes cars made?

Mercedes Benz has production factories all over the world but the main manufacturing factories are located only in Germany. Other location does not manufacture cars but only assembles from knockdown kits. The company has factories in 17 countries across 4 continents. 

Following are a few of the Mercedes Benz factories.

  • Bremen, Germany
  • East London, South Africa
  • Hambach, France
  • Iracemápolis, Brazil
  • Kecskemet, Hungary
  • Rastatt, Germany
  • Sindelfingen, Germany
  • Tuscaloosa, Alabama, USA
  • Bangkok, Thailand
  • Ho Chi Minh City, Vietnam
  • Jakarta, Indonesia
  • Pekan, Indonesia
  • Pune, India
  • Affalterbach, Germany
  • Arnstadt, Germany
  • Berlin, Germany
  • Cugir, Romania
  • Hamburg, Germany
  • Kolleda, Germany

The factory in Stuttgart, Germany is the mother factory, all the development, production and shipment of engines, transmissions and CKDs are shipped from this location. It is also the headquarters of the Daimler AG, recently named as Mercedes Benz group AG. The Stuttgart factory has a history extending back over 115 years and it is the highest tech location for the production of cars and hybrid drive systems. 

Mercedes Benz AG will be focusing on the development and production of electric cars under the EQ brand, and the Stuttgart factory will also produce lithium-ion batteries for electric vehicles and plug-in hybrids. Battery factories also have built-in Brühl and Hedelfingen plant sections. 

In addition to assembly and manufacturing parts of the electric cars, Germany will also become a global hub for battery production. 

The plant has six total facilities, Untertürkheim and Bad Cannstatt are responsible for the production of engines and the forge is also located there. The transmissions are manufactured in Sindelfingen. Mettingen has the foundry for axle production.

Mercedes Benz AG is responsible for GLobal production of Mercedes Benz passenger cars and Vans. the total number of employees worldwide exceeds over 200,000. 

What is the Mercedes Benz European delivery program?

Mercedes Benz European drive program allows great benefits like 10 % savings on the Maximum retail price of the vehicle, additional discounts on airfare and hotel accommodations and free factory tours in Stuttgart. The discount is higher on the flagship models like S class.

The customer centre in the biggest Mercedes Benz factory in Sindelfingen, Stuttgart also organises factory tours and has a Daimler restaurant for the customer. Customers can also enjoy various historic Mercedes Benz models on display as they wait for their car delivery.

Customers can walk into their local dealerships and enrol for the European driver program. This program allows customers to purchase or take delivery of their Mercedes from the customer centre in the Sindelfingen factory. Mercedes Benz will also arrange a 15 days European exploration tour with free vehicle insurance and a full tank of gas.

At the end of the tour, the vehicle can be dropped off at a given location and the car can be shipped to the respective country. Mercedes Benz will bear the cost of shipping the vehicle but some countries may require additional charges for the customs clearance.

After customs clearance, the customer can take their Mercedes home from the local dealerships.

The European tour can be extended for more than 15 days and customers can avail themselves 7 different tour packages for an additional cost which is billed in Vehicle order, but the vehicle must be dropped off at the following locations:

  • Germany – Hamburg, Berlin, Bremerhaven, Frankfurt, Munich, Sindelfingen
  • France – Nice, Paris
  • Switzerland – Geneva, Zurich
  • Spain – Madrid (extra fee)
  • UK – London (extra fee)
  • Netherlands – Amsterdam
  • Italy – Milan, Rome, Florence (extra fee)
  • Slovenia – Koper (extra fee)

The total delivery time for the vehicle can be from 7 to 10 weeks depending on the destination. The vehicle also goes through the vehicle preparation centre before final delivery to the customer. The vehicle preparation centre ensures the vehicle is in proper factory standards, if there are any faults they are rectified under VPC warranty. All the vehicle functions and accessories are checked before handing over to the customer.

The Mercedes Benz European drive program can be a good deal for customers as it offers discounts on selling price and since the cars are manufactured in Germany overall it can be cheaper compared to buying the Mercedes overseas.

Conclusion

Mercedes Benz cars in Germany can be just as expensive as the Mercedes Benz sold in the rest of the world. Mercedes Benz also sells certain base or stripped down models exclusively in Germany as some Models like the C class and E class are also used as taxis. These base variants can be cheap but they are not sold anywhere else as the cost will be too high due to import or registration tax and lack of equipment will make it less appealing to the customers.

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