New Delhi: Mercedes-Benz buyers heading into the new year will have to brace for higher prices. The German luxury carmaker has announced a price increase
of up to 2 percent across its India lineup, including electric vehicles, starting January 1, 2026. The move comes at a time when the luxury car market is already feeling pressure from global currency swings and rising costs.
Mercedes-Benz, this time has been more direct about the reason. The company says the euro to rupee exchange rate staying above the ₹100 level for a prolonged period has made imports and production more expensive than planned.
Mercedes-Benz confirms price hike from January 1
Mercedes-Benz India says the price increase will vary from model to model. The sharpest impact will be on completely built units, or CBUs, which are imported directly. Even locally assembled models will see a rise, as they rely heavily on imported components priced in euros.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, explained that the euro-rupee exchange rate has remained unfavourable for longer than expected this year. He said this prolonged volatility affects everything, from imported parts used in local assembly to fully imported cars. He also pointed to higher input costs, rising logistics expenses, and inflation adding to overall operational costs.
Which Mercedes cars will be affected
Mercedes-Benz operates its assembly plant in Pune, where several key models are put together for the Indian market. These include:
- A-Class Limousine
- GLA
- C-Class
- GLC
- E-Class LWB
- GLE
- S-Class
- GLS
- Maybach S 580
- EQS 580 sedan
- EQS SUV 450
While these cars are locally assembled, many of their components are imported, which means they are not immune to currency pressure. The rest of the portfolio, including most electric vehicles, Maybach models, and AMG performance cars, comes to India as CBUs. These models are expected to see the highest price revisions.
Why the euro is hitting Mercedes hard
Mercedes-Benz sources a large share of its components and vehicles from Europe. When the euro stays strong against the rupee, costs rise quickly. Add to that higher shipping costs, global inflation, and tighter logistics, and margins come under strain.
For enthusiasts, this also explains why performance and luxury imports often see sharper hikes than mass-market cars. Exchange rates play a bigger role here than many buyers realise.
Financing may soften the blow for buyers
Mercedes-Benz says financing will help reduce the impact of higher prices for many customers. The company notes that Mercedes-Benz Financial Services supports around half of its sales in India. Of those buyers, about 80 percent choose to finance their cars.
The company also highlighted that recent repo rate cuts by the Reserve Bank of India have helped lenders offer better terms. These lower interest rates could offset part of the price increase, especially for buyers opting for long-term loans.
What this means for the luxury car market
This price hike is unlikely to be the last in the segment. Other luxury brands that depend on imports face similar currency challenges. For buyers sitting on the fence, December may be the last window to lock in current prices.
