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Yes, that looks in need of replacement ...
Mine was never that bad but I would certainly recommend changing cap and rotor arm.
Also, remove and clean the dust cover behind. I bought a new one and I think they are expensive - I shall find out today. The o-ring on the old one was very compressed so I feel better about the new one, although replacing it may have been overkill.
In that hot and hostile environment, I do recommend installing genuine MB-sourced parts as I've suffered with cheaper Bremi parts.
All the best.
RayH
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