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German luxury carmaker Mercedes-Benz India has announced that it will increase the ex-showroom price of all cars sold in the country, from January 1, 2026. The price hike will affect the brand's entry-level offerings and go up till the high-end and performance range cars under the Maybach and AMG lineups. The carmaker has confirmed that the decision to increase these prices comes due to increased material costs and inflationary pressures on the brand. Here's what you need to know.
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According to the statement released by Mercedes-Benz India, the brand will hike prices of all its cars by 2 percent on the current ex-showroom value. The carmaker highlighted that
a key factor behind the need to increase the costs of their cars is the consistent trading of the Euro above the INR 100 mark, leading to forex challenges. What's more, this might not be the only price correction the brand has planned for 2026 as Mercedes-Benz is considering to quarterly price adjustments to reach closer to current levels.
While Mercedes-Benz has not announced the new prices for its cars post the 2 percent hike, buyers can expect to pay approximately Rs 1.60 lakh more for an E200 sedan that currently retails at Rs 78.50 lakh ex-showroom. The price hike also eats into the uniform GST benefit that had recently brought down prices for all Mercedes-Benz cars. In the case of the E-Class, the new GST rates had brought down the sedan's prices by up to Rs 5.2 lakh on its ex-showroom value.
Despite the price hike announcement, Mercedes-Benz India assured its customers that the carmaker only passes marginal costs to the market and shields its customers from the full impact of the currency movement. "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." Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said in an official statement.
Keep reading Times Now Auto for instant updates on all year-end discounts and price hikes on car from January 1, 2026.
