The price hike will affect vehicles registered on or after May 1 and has been implemented as a result of fluctuations between the pound and the Euro combined with inflationary increases across Europe.
A spokesman said: 'Over the past six months there has been a significant drop in the value of the pound compared with the Euro. There has also been a European mainland-wide inflationary price increase earlier in 2003.'
Some vehicles will escape the increase including new models such as the A160 CDI, C320 SE Sports Coupe, SL350 and the ML350. Also models fitted with the 180 Kompressor petrol engine, and 220 CDI and 270 CDI diesel engines will remain static alongside the M-class Inspiration special edition, Vaneo and V-class ranges.