Mercedes-Benz India has announced a price hike of up to 2% across its entire model range, effective from January 1, 2026. The decision comes at a time when the luxury carmaker is facing sustained pressure from unfavourable foreign exchange rates and rising operational costs.
According to the company, the Euro-INR exchange rate has remained consistently above the Rs 100 mark throughout 2025, creating long-term challenges for its business in India. Since Mercedes-Benz relies heavily on imported components as well as completely built units (CBUs), currency volatility has a direct impact on production and sourcing costs. This has made it difficult for the brand to absorb expenses without revising prices.
Commenting on the development, Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, explained that the prolonged forex volatility affects every part of the operation. In addition to higher import costs, the company is also dealing with rising input prices, increased logistics expenses and broader inflationary pressures, all of which have added to overall costs.
That said, Mercedes-Benz has been cautious about passing on the full burden to customers. The brand has so far limited price increases to marginal levels, despite the sharp currency movement. Iyer also highlighted that recent repo rate reductions by the Reserve Bank of India have helped Mercedes-Benz Financial Services offer better financing options, which has softened the impact of the price hike for buyers.
However, Mercedes-Benz has indicated that it may consider further quarterly price adjustments if cost pressures continue. For prospective buyers, this means prices of Mercedes-Benz cars in India could see gradual increases in 2026.
Customers planning to buy a Mercedes-Benz luxury car may find it beneficial to finalise their purchase before January 2026, as the upcoming price hike is set to affect all models in the lineup.
