Mercedes-Benz Cars Set to Get Costlier as Company Announces Price Hike

German luxury carmaker Mercedes-Benz, one of the most aspirational automotive brands in the world, is all set to revise the prices of its cars in India. Known for blending cutting-edge technology with timeless luxury, Mercedes-Benz already commands a strong presence in the Indian premium car market. However, owning a Mercedes-Benz is soon going to get slightly more expensive.

Mercedes-Benz announces price hike in India

Mercedes-Benz has officially confirmed a price increase across its entire product portfolio in India. The luxury automaker will raise prices of all its cars by 2 percent, making it a uniform hike across entry-level luxury models, high-end sedans, SUVs and top-spec variants. The revised prices will come into effect from January 1, 2026.

When will the new prices apply?

Customers planning to buy a Mercedes-Benz should note that the new pricing structure will be applicable from the beginning of the new year. Cars invoiced on or after January 1, 2026, will reflect the increased prices, while bookings completed before that date may still be eligible for current rates, depending on dealership policies.

Key reasons behind the decision

According to Mercedes-Benz, the decision to increase prices was not taken lightly. The company pointed to a combination of persistent currency fluctuations, rising production and input costs, and mounting logistical challenges. These factors have steadily pushed up operational expenses for the brand in India.

Euro-rupee fluctuation plays a major role

A significant contributor to the price hike is the euro-rupee exchange rate, which has remained consistently above the ₹100 mark for an extended period. This has had a direct impact on the cost of imported components, spare parts and Completely Built Units (CBUs). Since many Mercedes-Benz models and parts rely on imports, the weak rupee has added considerable financial pressure.

Brand absorbs most of the cost burden

Mercedes-Benz clarified that it has absorbed a large part of these additional costs so far, choosing not to pass on the full impact to customers. However, with prolonged economic instability, a limited price correction has now become necessary to ensure business continuity and operational stability.

What the company leadership said

Santosh Iyer, Managing Director and CEO of Mercedes-Benz India , said that the ongoing volatility affects every aspect of the company’s operations. He подчеркed that while Mercedes-Benz has shouldered most of the cost increases internally, only a small portion is now being passed on to customers, keeping the hike as minimal as possible.

What this means for buyers

For prospective buyers, the 2 percent hike may translate into a noticeable increase, especially on higher-end models. However, Mercedes-Benz maintains that the increase is measured and balanced, aimed at sustaining long-term growth without significantly impacting customer sentiment.

Mercedes-Benz cars in India are getting slightly pricier, but the brand says the hike has been kept minimal amid challenging global conditions.