Mercedes-Benz India to Raise Vehicle Prices by Up to 2% Starting January 2026
New Delhi: Mercedes-Benz India announced on Friday that it will implement a price increase of up to 2% on its vehicles beginning in January 2026. This decision is aimed at counteracting the effects of the declining Indian Rupee against the Euro. The luxury automobile market leader indicated that this price adjustment, capped at 2%, is a response to ongoing foreign exchange pressures that have affected the luxury automotive sector throughout 2025.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, stated, “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.”
Rationale for Price Adjustment
The car manufacturer, headquartered in Pune, emphasized that the current currency situation is exerting significant financial pressure on their supply chain. This is impacting both the cost of parts required for local assembly and the pricing of fully assembled vehicles imported from abroad.
Despite ongoing efforts to enhance their localization strategy, the company finds it necessary to raise prices to ensure operational sustainability. Increasing costs associated with materials, shipping, and general living expenses have placed significant strain on the firm’s profits. Therefore, these price adjustments are deemed essential for maintaining effective operations.
Iyer further noted, “Thanks to RBI’s continuous repo rate reduction, Mercedes-Benz Financial Services is able to pass on the benefits to end customers, thereby mitigating the price increase effect to a large extent.”
This announcement comes in the wake of a similar statement from BMW India, which indicated plans to hike vehicle prices from January due to the weakness of the Indian Rupee against the Euro.
Upcoming Launch of the Mercedes-Benz GLB in India
The new Mercedes-Benz GLB was officially unveiled globally on December 8 and is slated for a launch in India shortly. Built on a new platform shared with the latest Mercedes-Benz CLA, the GLB will be available in both petrol and diesel variants. In contrast, the CLA will be offered in India exclusively as an electric vehicle (EV).
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