New Delhi: Mercedes-Benz India on Friday announced that it will increase prices across its entire model range by up to 2 per cent starting January 1, 2026. The company said the price correction is necessary
due to rising operational costs and sustained foreign exchange challenges throughout 2025.
“The price correction capped at 2 per cent, reflects sustained forex pressures that have characterised the luxury automotive landscape throughout 2025,” the luxury carmaker said in a statement. The Euro has remained above the Rs 100 mark for most of the year, which is much higher than the earlier average rates, creating heavy pressure on the company’s expenses. Mercedes-Benz India explained that the strong Euro has affected every part of its operations.
This includes the cost of imported components used in locally assembled cars and the cost of fully imported vehicles. The company said that rising input and material costs, higher logistics expenses and general inflation have further increased its overall operational costs. Managing Director and CEO Santosh Iyer said the currency situation has been tougher and longer than expected. He added that although the company is facing significant cost pressures, it is passing only a small part of the impact to customers.
Mercedes-Benz is absorbing most of the additional expenses to ensure that the price rise remains limited. Mercedes-Benz Financial Services (MBFS) will continue to offer flexible financing plans to help customers manage the impact of the price increase. Since 80 per cent of Mercedes-Benz buyers in India opt for financing, and MBFS supports nearly half of the brand’s total sales, these financial solutions are expected to ease the overall burden on customers.
“With 80 per cent of Mercedes-Benz purchases in India involving financing, and MBFS directly facilitating approximately 50 per cent of total brand sales, Financial Services plays a pivotal role in driving ownership ecosystem for Mercedes-Benz,” they added. The company said that the Reserve Bank of India’s repo rate cuts have also helped MBFS pass on benefits to buyers, reducing the effect of the price hike to a large extent.
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