Mercedes-Benz India has announced fresh price hikes across its entire portfolio. The prices of the cars will increase by up to 2%. This includes ICE and all-electric offerings. The new prices will come into effect on January 1, 2026. The automaker cites ongoing forex challenges as the primary reason behind the price increase. It maintains that it is absorbing most of the impact of the currency movement, passingly only marginal costs to the market.
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Mercedes-Benz: Forex challenges, rising input costs linked to price hike
According to Mercedes-Benz, the Euro-INR exchange rate floating consistently above the Rs 100 mark has created substantial cost pressures across the supply chain, affecting parts imported for local assembly as well as CBU (Completely Built Up) imports. The automaker’s localisation strategy has absorbed most of the increased costs so far, but a price adjustment has now become necessary.
Apart from the sustained forex pressures, Mercedes-Benz has also cited a rise in input costs, commodity prices, increased logistical expenses, and other inflationary pressures as reasons driving the price hike. These factors had been creating significant pressure on the company’s bottom line. Since 80% of the automaker’s sales in India involve financing, MBFS (Mercedes-Benz Financial Services) has developed tailored financial products to mitigate any EMI impact from the upcoming price adjustment. MBFS drives approximately 50% of the brand’s total sales in India.
Mr Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said, “Currency headwinds have persisted longer than we anticipated this year, with Euro consistently trading over 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. Thanks to RBI’s continuous repo rate reduction, enabling Mercedes-Benz Financial Services to pass on the benefits to end customers, thereby mitigating price increase effect to a large extent.”
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Final Thoughts
Mercedes-Benz’s portfolio in India currently consists of 16 models. This includes cabriolets/roadsters, coupes, limousines, SUVs, and EVs. The A-Class Limousine, C-Class, E-Class, S-Class, GLA, GLC, GLS, Maybach S 580, EQS 580, and EQS SUV 450 are locally assembled at the automaker’s facility in Pune. Other models are CBU imports.
