New Delhi. Mercedes-Benz has announced an increase of up to 2 percent in the prices of all its model ranges. The new prices of these models will be applicable from January 1, 2026. The company has taken this step due to the current economic conditions affecting the luxury car market. The automaker cited “continued volatility, rising input costs and persistent logistics challenges” as the reasons for the price increase.
Effect of Euro-INR exchange
Additionally, the company has claimed that the Euro-INR exchange rate will remain above Rs 100 throughout 2025, which is higher than the historical average. This impacts the cost of imported components used in local assembly and completely built units (CBUs). Due to this the total operational cost of the company has increased. The brand further said that Mercedes-Benz India has largely managed these increases through its localization strategy, but selective adjustments have become necessary to keep the business sustainable.
rising input costs
Commenting on the issue, Santosh Iyer, Managing Director and CEO, Mercedes-Benz India, said, “Currency challenges have persisted longer than we expected this year, with the euro consistently trading above Rs 100. This prolonged volatility impacts every part of our operations, be it imported components or fully fledged units for local production. Additionally, due to rising input costs, logistics expenses and inflation, our “The total operational costs have increased significantly.”
He further said, “Due to the continuous reduction in repo rate by RBI, Mercedes-Benz Financial Services is able to pass this benefit to the customers, due to which the impact of increase in prices is reduced to a great extent.” The amount of price change will vary depending on the model. Especially in models which are more dependent on imports, more changes will be seen. Locally produced vehicles benefit from the company’s Chakan facility. This facility is part of the global production network of Mercedes-Benz.
company portfolio
The models in the company’s portfolio in India include the A-Class, C-Class, E-Class Long Wheelbase, S-Class and the Mercedes-Maybach S 580. Electric vehicles manufactured here include EQS 580 sedan and EQS SUV 450. Imported CBUs include the G 450d, GLS Maybach and AMG models (ranging from A 45 S to GT 63 S E-Performance). The BEV lineup also includes the EQA 250, EQB SUVs, EQE 500 4MATIC SUV, Mercedes-Maybach EQS 680 SUV and G 580 with EQ technology.
