Mercedes-Benz India on Wednesday said it will hike prices of its vehicles by up to Rs5 lakh from March 15 in order to offset the impact of infrastructure cess and luxury tax proposed in the Budget 2016-17. The price up by be between 3 per cent and 5 per cent depending on the model, leading to a price hike between Rs1 lakh and Rs5 lakh. In India, the German luxury carmaker sells models ranging from A Class to Maybach, priced between Rs28 lakh and Rs1.67 crore (ex-showroom price). Elaborating on the need to go in for price hike, the company said: “The imposition of an infrastructural cess as well as an additional luxury tax announced in the Union Budget 2016, has negatively impacted the prices of the Mercedes-Benz model range.”