Key highlights
- Mercedes-Benz India will increase prices across its entire model range by up to 2 percent from 1 January 2026.
- The revision is linked to forex pressure as the Euro stays above INR 100 through 2025, along with rising material and logistics costs.
- Mercedes-Benz Financial Services will cushion the impact through tailored finance options.
Mercedes-Benz India has announced a price hike of up to 2 percent across its entire product lineup starting 1 January 2026. The company says the correction is unavoidable, given the sustained spike in operational costs through 2025 and an unfriendly currency environment that refuses to settle down.
Rupee’s poor Forex performance
The Euro has hovered above INR 100 for most of the year, which is far from the comfortable levels the industry had gotten used to. This jump directly hits imported parts used for local assembly and completely built units. Even with Mercedes-Benz’s localisation efforts doing the heavy lifting, the gap has now grown too wide to absorb.
The company also flagged rising material costs, inflationary pressures and higher logistics expenses as key contributors. Put together, these factors have pushed the brand to finally adjust prices so it can maintain healthy operations without compromising product quality or customer experience.
Interestingly, this is described as a correction rather than a blanket hike. The adjustment varies by model, depending on the level of local content. Models with higher import dependency naturally carry more exposure to currency fluctuation.
Mercedes-Benz Financial Services to the rescue
Mercedes-Benz Financial Services will play a crucial role in softening the blow. With nearly 80 percent of Mercedes-Benz customers opting for financing, and around half of them financed directly through MBFS, the brand plans to structure EMI-friendly solutions to offset much of the impact. Lower repo rates from the RBI in recent months are expected to help here as well, creating some breathing room for customers upgrading to a luxury car in 2026.
The company also hinted at the possibility of further quarterly price reviews next year if forex volatility continues. In short, the brand is tightening its belt in the background while keeping the customer-facing experience as steady as possible—a balancing act that luxury players know all too well.
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