Luxury car manufacturer Mercedes-Benz India has announced an upward price revision of up to 2% across its entire model range, effective from January 1, 2026. The company cited sustained foreign exchange pressures, rising input costs, and escalating logistical expenses as the primary reasons for the necessary adjustment.
The price correction, which is capped at 2%, is being implemented to offset the impact of the depreciating Indian Rupee against the Euro. According to the company, the Euro-INR exchange rate has consistently traded above the ₹100 mark throughout 2025, which is significantly higher than historical averages. This volatility has sharply increased the cost base for both imported components used in locally assembled vehicles and completely built units (CBUs).
Key details of the price hike:
- Impact: Prices will increase by up to 2% across the entire portfolio.
- Effective Date: January 1, 2026.
- Rationale: Persistent currency headwinds (Euro consistently above ₹100), rising commodity prices, input costs, and logistical expenses.
- Variance: The exact quantum of the increase will vary across models, depending on their level of localization versus dependency on imported components.
Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, noted that the company has been shielding customers from the full impact of these cost pressures but that a selective price adjustment is now essential to maintain operational sustainability.
To mitigate the effect on customers, Mercedes-Benz Financial Services (MBFS) has introduced customized financial products designed to ease the impact on monthly EMIs, a move aided by the Reserve Bank of India’s continuous repo rate reductions.
The luxury carmaker also indicated that it might consider further quarterly price revisions in 2026 should the currency volatility and other macroeconomic factors persist. This announcement follows similar indications from other luxury automakers in the country.
