Mercedes-Benz to hike prices across its entire range of India offerings

Mercedes-Benz vehicles are all set to get costlier in India, with the company announcing a 2% upward price revision across its entire range of offerings. With price hike will be with effect from January 1, 2026.

The luxury carmaker cited "sustained currency volatility, rising input costs and persistent logistical challenges" as reasons behind the price hike.

In a statement, Mercedes-Benz India said that while it had not passed the full impact of the current challenges on to its customers till now, a price hike has now become necessary to "ensure operational stability".


The company "continues to shield customers from the full impact of adverse economic conditions," it said.

The upward adjustment in price comes in a year when the euro–rupee exchange rate has consistently traded above the Rs 100 mark -- a level far higher than historical trends, the company added.

According to the company, the current rupee-euro dynamics have hit every link in its value chain, from imported components used in local assembly to completely built units (CBUs) brought into the country.

"This prolonged volatility affects every aspect of our operations -- from imported components for local production to completely built units. Rising input and logistical costs, combined with inflationary pressures, have significantly increased our overall operational costs," said Santosh Iyer, Managing Director & CEO, Mercedes-Benz India.

"Thanks to RBI's continuous repo rate reduction, enabling Mercedes-Benz Financial Services to pass on the benefits to end customers, thereby mitigating the price increase effect to a large extent," Iyer added.

Mercedes-Benz added that it continues to absorb the majority of the ongoing cost pressures, passing on only a small percentage to buyers. The 2% cap, it said, reflects both its long-term commitment to maintaining affordability and its need to align gradually with current realities of exchange rates.

The price hikes will vary across models based on the proportion of local content versus import dependency. Vehicles that rely more heavily on imported components or are fully imported are likely to see a slightly higher raise, while locally assembled units with greater domestic sourcing may face more modest revisions.

The company also said that there is a possibility of further quarterly price revisions in 2026, depending on how rupee-euro trends turn out from here on.

BMW India, another luxury car company, announced a day earlier that it was mulling raising vehicle prices from January as the rupee weakens against the Euro.