TL;DR
Mercedes-Benz India will increase prices by up to 2% across all models from January 1, 2026, due to rising operational costs and sustained foreign exchange pressures.
Mercedes-Benz India has announced an upcoming price increase of up to 2 percent across its entire model lineup, effective January 1, 2026. This adjustment is primarily attributed to persistent foreign exchange challenges and rising operational costs experienced throughout 2025.
According to the luxury carmaker, the Euro has consistently traded above the Rs 100 mark for most of the year, significantly impacting expenses related to imported components for locally assembled vehicles and completely built units. Despite an aggressive localization strategy aimed at absorbing much of these increased costs, a selective price correction has become necessary to ensure operational sustainability.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, stated that the company is absorbing the majority of the additional expenses to minimize the impact on customers. Mercedes-Benz Financial Services (MBFS) will continue to offer flexible financing solutions to help mitigate the effects of the price increase, as a large percentage of buyers in India opt for financing options.
