The luxury German automaker Mercedes-Benz is going to increase its prices in India. The company has announced a 2% price hike for all the cars from the brand. This price hike will be implemented from 1st January 2026.
The luxury carmaker argues that sustained currency volatility, rising input costs, and persistent logistical challenges are the reasons behind the price hike. In a recent statement Mercedes-Benz India said that while it has not passed the full impact of the current challenges on to its customers till now, the company further told that the price hike has become mandatory to ensure the operational stability.
The hike adjustment in price comes at a time when the euro-rupee exchange rate has consistently traded above Rs.100. As per the company, the current rupee-euro dynamics have hit every link in its value chain. The imported components used in local assembly to completely built units (CBUs) brought into the country.
The managing director and CEO of Mercedes Benz India Santosh Iyer said that “This prolonged volatility affects every aspect of our operations — from imported components for local production to completely built units. Rising input and logistical costs, combined with inflationary pressures, have significantly increased our overall operational costs”
He further said that “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 added that it continues to manage the majority of ongoing cost pressure, passing it only a small percentage to buyers. The company said the 2% hike reflects both its long-term commitment to maintain affordability.
The price hikes will vary across models based on the proportion of local content versus import dependency. The cars that are relying heavily on imported components or are fully imported are likely to see a slightly higher raise, whereas the locally assembled units with more domestic sourcing may face more modest revisions.
The company stated there is a possibility of further quarterly price revisions in 2026, depending on how rupee-euro trends turn out from here on.
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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