Mercedes-Benz will increase prices across its range in India

Mercedes-Benz vehicles are set to become more expensive in India, with the company announcing a 2% price revision across its range. The price increase will take effect from January 1, 2026.The luxury car maker cited “ongoing currency volatility, rising input costs and ongoing logistics challenges” as reasons behind the price hike.

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

The company “continues to protect customers from the full impact of adverse economic conditions,” the company said.The upward adjustment in price comes in a year when the euro-rupee exchange rate has consistently traded above Rs 100 – a level much higher than historical trends, the company added.

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

“This prolonged volatility is impacting every aspect of our operations – from imported components for local production to fully built units. Rising input and logistics costs, combined with inflationary pressures, have significantly increased our overall operating costs,” said Santosh Iyer, Managing Director & CEO, Mercedes-Benz India. “Thanks to the continued reduction in repo rate by RBI, Mercedes-Benz Financial Services can pass on the benefits to the end customers, thereby mitigating the effect of price hike to a large extent,” Iyer added.

Mercedes-Benz added that it continues to absorb most of the ongoing cost pressures and only passes a small percentage on to buyers. The 2% cap reflects both the country’s long-term commitment to maintaining affordability and the need to gradually adjust to current exchange rate realities.

Price increases will vary by model depending on the proportion of local content versus import dependence. Vehicles that rely more heavily on imported parts or are fully imported will likely see a slightly higher increase, while locally assembled units with greater domestic sourcing may see more modest revisions.

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

BMW India, another luxury car company, announced a day earlier that it is considering raising car prices from January as the rupee weakens against the euro.