Mercedes-Benz India to Raise Prices by 2% Citing Forex Rate Shifts

Mercedes-Benz cars in India are set to get a little more expensive, starting from January 1, 2026. The company will be adjusting ex-showroom prices upwards by up to 2 percent, across its entire range. This is mainly due to the Indian Rupee’s recent decline in value against the Euro, which affects material costs as well as operating and logistics expenses. The company has also suggested that additional revisions could happen on a quarterly basis.

The Euro is currently trading at ₹106.04 Indian rupees, as opposed to ₹88.77 a year ago at this time. It breached the ₹100 mark for the first time ever in late June this year. Mercedes-Benz India, in its announcement, noted that the current trading rate is “significantly higher than historical averages”.

The company also said that it has so far absorbed the impact of forex rate fluctuations, rather than passing them on to its customers, and even this price hike is only a marginal adjustment. 

While the exact price changes for each model have not yet been announced, the increases will vary, based on how much their manufacturing has been localised and how dependent each one is on imported materials and components. 

“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", Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said.

He also said the RBI’s continuous repo rate reductions have allowed Mercedes-Benz Financial Services to pass on benefits to end customers, mitigating the effects of price increases.

Mercedes-Benz continues to be India’s top luxury carmaker by market share, with the E-Class LWB the country’s best-selling luxury car in H1 FY2025. Its previous round of price hikes was split between May and September this year, with adjustments also made in November 2024. These were, however, offset by the industry-wide GST 2.0 price reduction which saw prices fall by up to ₹11 lakh. September this year was also the company's best-ever month of sales, growing 36 percent YoY.