Mercedes-Benz cars will become costlier in India from next month
What's the story
Luxury carmaker Mercedes-Benz has announced a price hike of up to 2% on its entire range of vehicles in India. The increase will come into effect from January 1, 2026. The company cited "sustained currency volatility, rising input costs and persistent logistical challenges" as reasons for the decision. Despite these challenges, Mercedes-Benz has been absorbing most of the cost pressures and passing only a small percentage onto customers.
Model-specific changes
Price adjustments to vary across models
The upcoming price hike will differ across models, depending on their local content and import dependence. Models that are more import-dependent or fully imported could see a slightly higher hike. On the other hand, the locally assembled models with a higher proportion of domestic sourcing could see more moderate hikes.
Potential revisions
Future price hikes under consideration
Mercedes-Benz is also considering further quarterly price hikes in 2026, depending on the rupee-euro exchange rate. These potential adjustments will be guided by the extent and duration of Euro-INR movement. The company hopes to manage volatility with these revisions rather than implementing broad annual increases.
Financial support
Financing solutions to offset price hike impact
Mercedes-Benz Financial Services (MBFS) will continue to offer customers customized financing products that mitigate the EMI impact of the cost hike. Given that almost 80% of Mercedes-Benz vehicles in India are bought on finance, and MBFS facilitates about half those transactions, the company expects such financing solutions to remain a stabilizing factor in overall ownership costs, even as prices rise from January.