Mercedes-Benz India to hike prices by up to 2% from January
Mercedes-Benz India stated that the price adjustment is essential for counteracting the depreciation of the Indian Rupee relative to the Euro.
Mercedes-Benz India announced on Friday that it will increase vehicle prices by up to 2 per cent starting January 2026. This price correction is a necessary step to offset the impact of the weakening Indian Rupee against the Euro. The luxury car market leader stated that the price adjustment, which is capped at 2 per cent, reflects the sustained foreign exchange pressures that have characterized the luxury automotive landscape throughout 2025.
"Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the Rs 100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production to completely built units," said Santosh Iyer, MD and CEO of Mercedes-Benz India.
Rational for price hike
The car company based in Pune pointed out that the current currency situation is putting a lot of financial strain on their supply chain. This is impacting the cost of parts they need to bring in for local assembly, as well as the price of fully assembled cars they import.
Even though the company has been working hard on the localisation strategy, it's become necessary to raise some prices to maintain operational sustainability. Rising costs for materials, shipping, and general living expenses have put a lot of pressure on the company's profits, so making these adjustments is needed to ensure we can continue operating effectively.
Iyer added, "Thanks to RBI's continuous repo rate reduction, Mercedes-Benz Financial Services is able to pass on the benefits to end customers, thereby mitigating the price increase effect to a large extent".
This move follows a similar announcement made on Thursday by BMW India, which stated it is also considering hiking vehicle prices from January due to the Indian rupee's weakness against the Euro.
Mercedes-Benz GLB India launch
The new Mercedes-Benz GLB was officially unveiled globally on December 8 and is set to be launched in India soon. This vehicle is built on a new platform that it shares with the latest Mercedes-Benz CLA. While the CLA will only be available in India as an electric vehicle (EV), the GLB will be offered in both petrol and diesel options.
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