Mercedes-Benz India hikes car prices up to 2 pc, to be effective from Jan 1
New Delhi, Dec 12
Mercedes-Benz India on Friday announced that it will increase prices across its entire model range by up to 2 per cent starting January 1, 2026.
The company said the price correction is necessary due to rising operational costs and sustained foreign exchange challenges throughout 2025.
“The price correction capped at 2 per cent, reflects sustained forex pressures that have characterised the luxury automotive landscape throughout 2025,†the luxury carmaker said in a statement.
The Euro has remained above the Rs 100 mark for most of the year, which is much higher than the earlier average rates, creating heavy pressure on the company’s expenses.
Mercedes-Benz India explained that the strong Euro has affected every part of its operations.
This includes the cost of imported components used in locally assembled cars and the cost of fully imported vehicles.
The company said that rising input and material costs, higher logistics expenses and general inflation have further increased its overall operational costs.
Managing Director and CEO Santosh Iyer said the currency situation has been tougher and longer than expected.
He added that although the company is facing significant cost pressures, it is passing only a small part of the impact to customers.
Mercedes-Benz is absorbing most of the additional expenses to ensure that the price rise remains limited.
Mercedes-Benz Financial Services (MBFS) will continue to offer flexible financing plans to help customers manage the impact of the price increase.
Since 80 per cent of Mercedes-Benz buyers in India opt for financing, and MBFS supports nearly half of the brand’s total sales, these financial solutions are expected to ease the overall burden on customers.
“With 80 per cent of Mercedes-Benz purchases in India involving financing, and MBFS directly facilitating approximately 50 per cent of total brand sales, Financial Services plays a pivotal role in driving ownership ecosystem for Mercedes-Benz,†they added.
The company said that the Reserve Bank of India’s repo rate cuts have also helped MBFS pass on benefits to buyers, reducing the effect of the price hike to a large extent.
— IANS
Reader Comments
At least they are being transparent about the reasons and capping the increase. The financing options from MBFS are a relief. In this economy, every bit of support helps, even for luxury buyers.
This is the reality of global supply chains. Euro above ₹100 is a killer for imports. It's not just cars, but many imported goods will see price corrections. Time to support more 'Make in India' for luxury components too.
Respectfully, while I appreciate the company absorbing most costs, a price hike announcement just before the new year feels like a strategic move. Many plan purchases in January. A bit of a dampener for those saving up.
The repo rate cuts by RBI helping to offset the hike is a good point. Shows how macroeconomics directly affects our pockets. For those who can afford it, 2% might not be a dealbreaker, especially with good financing. 🚗
My husband and I were planning to book a GLC next year. This news makes us want to finalize the deal before December 31st! The race against the price hike is on. 💨
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