Mercedes-Benz Car Prices In India To Increase By Up To 2% From January 1

-The Mercedes-Benz price hike is due to rising material costs and a strong Euro-INR exchange rate.
-The exact price adjustment will vary by model, depending on whether they are locally produced or imported.

Mercedes-Benz India has announced that the prices of its cars will increase by up to 2% from January 1, 2026. This comes after recent GST updates, which had lowered prices on several models, including the A200d and GLC 300, as part of the company’s effort to pass on tax benefits to customers. Mercedes-Benz cites rising production costs, higher logistics expenses, inflation, and a strong Euro-INR exchange rate as key reasons for the revision. While the exact price hike for each model remains undisclosed, the company states that it will differ will vary across the range, based on whether a model is locally produced or imported.

Commenting on the upcoming price hike, Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said 'Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the INR 100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production to completely built units. In addition, rising input costs, increasing logistical expenses, in combination with inflationary costs, have significantly risen our overall operational costs.'

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He further added, '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.'

Mercedes-Benz Price Hike: Key Reasons Explained

The luxury automaker experienced significant cost pressures this year as the Euro remained consistently above Rs 100, inflating the price of imported components for both local and imported cars. In addition, rising costs for inputs, commodities, and logistics further added to the strain. While localisation offsets much of the pressure from inflation, commodity, logistics, and currency fluctuations, Mercedes-Benz India states that a targeted price hike is necessary to maintain sustainable operations.

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 According to the company, nearly 80% of Mercedes-Benz cars in India are purchased through financing, with MBFS (in-house lender) directly managing about half of them. To ease the effect of the price increase, MBFS has introduced specialised financing options that help minimise changes to monthly EMIs.