Did Mercedes-Benz India Just Announce a Price Hike?
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Synopsis
Mercedes-Benz India has announced a price increase of up to 2% across its model range, effective January 1, 2026. This decision comes in light of rising operational costs and foreign exchange challenges faced throughout 2025. The company aims to absorb most of the additional costs while offering flexible financing solutions to ease the burden on customers.
Key Takeaways
- Price Increase: Up to 2% across all models
- Effective Date: January 1, 2026
- Reason: Rising operational costs and foreign exchange issues
- Cost Absorption: Company absorbing most additional costs
- Financing Support: Flexible plans offered by MBFS
New Delhi, Dec 12 (NationPress) In a recent announcement, Mercedes-Benz India revealed plans to raise prices for its entire range of vehicles by up to 2 percent, effective January 1, 2026. The company highlighted that this adjustment is necessary due to escalating operational expenses and ongoing foreign exchange difficulties experienced throughout 2025.
According to the luxury automaker, this price adjustment, limited to 2 percent, reflects the persistent foreign exchange pressures that have impacted the luxury automotive sector in 2025.
The Euro has consistently remained above the Rs 100 threshold for much of the year, significantly exceeding previous average rates, which has intensified financial strain on the company's operations.
Mercedes-Benz India stated that the robust Euro has influenced every aspect of its business operations.
This includes the expenses associated with imported parts used in locally assembled vehicles as well as fully imported cars.
Furthermore, the company pointed out that rising input and material costs, increased logistics expenses, and general inflation have compounded its overall operational burdens.
Managing Director and CEO Santosh Iyer mentioned that the currency situation has proven to be more challenging and prolonged than anticipated.
Despite facing significant cost pressures, he noted that the company is only transferring a minor portion of these impacts to its customers.
Mercedes-Benz is shouldering most of the additional costs to restrict the price increase.
Mercedes-Benz Financial Services (MBFS) will continue to provide flexible financing solutions to assist customers in managing the consequences of the price hike.
With 80 percent of Mercedes-Benz purchasers in India choosing financing options, and MBFS contributing to nearly half of the brand's total sales, these financial solutions are expected to alleviate the overall burden on consumers.
“Given that 80 percent of Mercedes-Benz transactions in India involve financing, and MBFS actively supports around 50 percent of total brand sales, Financial Services plays a crucial role in enhancing the ownership ecosystem for Mercedes-Benz,” they stated.
The company also noted that the Reserve Bank of India's repo rate reductions have enabled MBFS to pass on advantages to buyers, which significantly mitigates the effects of the price hike.
Point of View
It's crucial to inform our readers about significant updates in the automotive sector. Mercedes-Benz India's planned price hike reflects broader economic challenges, including fluctuating foreign exchange rates and rising operational costs. While such adjustments may impact consumers, the brand's commitment to minimizing the price increase demonstrates its dedication to customer satisfaction.
NationPress
12/12/2025
Frequently Asked Questions
Why is Mercedes-Benz India increasing car prices?
The price increase is due to rising operational costs and ongoing foreign exchange challenges faced throughout 2025.
When will the new prices take effect?
The new prices will be effective starting January 1, 2026.
How much will the prices increase?
Prices will increase by up to 2 percent across the entire model range.
Is Mercedes-Benz absorbing any costs from the price hike?
Yes, Mercedes-Benz is absorbing most of the additional expenses to limit the impact of the price increase on customers.
What financing options are available to customers?
Mercedes-Benz Financial Services will continue to offer flexible financing plans to help customers manage the impact of the price increase.
