NEW DELHI– Mercedes-Benz India on Friday announced a price increase of up to 2 percent across its entire model lineup, effective January 1, 2026, citing rising operational costs and prolonged foreign exchange pressures.
The luxury carmaker said the price adjustment has been necessitated by sustained currency volatility and higher expenses throughout 2025.
“The price correction capped at 2 percent reflects sustained forex pressures that have characterised the luxury automotive landscape throughout 2025,” the company said in a statement.
Mercedes-Benz India noted that the euro has remained above the Rs 100 level for most of the year, significantly higher than historical averages, placing considerable strain on costs. The strong euro has impacted multiple areas of the business, including the cost of imported components used in locally assembled vehicles as well as fully imported models.
The company said rising input and raw material costs, increased logistics expenses, and overall inflation have further added to operational pressures.
Managing Director and Chief Executive Officer Santosh Iyer said the currency situation has been more challenging and prolonged than anticipated. He added that while the company continues to face substantial cost increases, only a limited portion is being passed on to customers.
Mercedes-Benz is absorbing a majority of the additional expenses to keep the price hike moderate, he said.
Mercedes-Benz Financial Services will continue to offer flexible financing solutions to help customers manage the impact of the higher prices. Around 80 percent of Mercedes-Benz customers in India opt for financing, with the company’s financial arm supporting nearly half of total brand sales.
“With 80 percent of Mercedes-Benz purchases in India involving financing, and MBFS directly facilitating approximately 50 percent of total brand sales, Financial Services plays a pivotal role in driving the ownership ecosystem for Mercedes-Benz,” the company said.
Mercedes-Benz India also noted that recent repo rate cuts by the Reserve Bank of India have enabled MBFS to pass on benefits to customers, helping to offset the impact of the price increase to a significant extent. (Source: IANS)
