Mercedes-Benz India to hike car prices by up to 2% from Jan 2026

Mercedes-Benz India will increase prices by up to 2% from January 1, 2026. The company cites sustained forex pressures, rising input costs, and logistical expenses as reasons for the price correction across its entire model range.

Mercedes-Benz India announced a pricing adjustment across its entire model range, effective from 1st January 2026, the company said in a statement.

Reasons for the Price Correction

The price correction, capped at 2%, reflects sustained forex pressures that have characterised the luxury automotive landscape throughout 2025. In addition, rising input costs, commodity prices, and logistical expenses, combined with inflationary pressures, have been significantly affecting the company's bottom line, necessitating a price correction, the company said in a statement.

Throughout 2025, the Euro-INR exchange rate has traded consistently above Rs 100, representing a significant deviation from earlier periods. This currency environment has created substantial cost pressures across the supply chain, affecting both imported components for local assembly and the import of CBU (completely built-up vehicles), it added.

Despite the company's aggressive localisation strategy, which continues to absorb the bulk of increased costs, a selective price adjustment has become essential to maintain operational sustainability.

Management Commentary

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 Rs 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 increased our overall operational costs."

"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," he added.

Financial Solutions to Mitigate Impact

Mercedes-Benz Financial Services has developed tailored financial products to mitigate the impact of this price adjustment on EMIs. With 80% of Mercedes-Benz purchases in India involving financing, and MBFS directly facilitating approximately 50% of total brand sales, Financial Services plays a pivotal role in driving the ownership ecosystem for Mercedes-Benz. (ANI)

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