Mercedes-Benz India To Raise Prices By Up To ₹12.2 Lakh: Here’s Why
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Mercedes-Benz India has announced a two-phase price hike across its entire model lineup, with the first stage set to be implemented from June 1, 2025. The price adjustments range from ₹90,000 for the C-Class to a steep ₹12.2 lakh for the flagship Mercedes-Maybach S 680. The second phase is scheduled for September 1, 2025, with an additional 1.5% increase across all models. The luxury automaker has cited fluctuations in foreign exchange rates and rising import costs as primary reasons behind the decision.
While Mercedes-Benz has been absorbing a large portion of the rising costs, the German luxury carmaker said a partial pass-through to customers was unavoidable. To mitigate the impact, the company has been working to deepen its localisation strategies, thereby reducing its dependency on imported parts.
According to industry analysts, this price hike is reflective of global economic pressures, including inflation and currency instability, affecting luxury brands worldwide. Mercedes-Benz India’s move aims to balance the escalating costs while still offering competitive value in the premium segment.
Come September 1, 2025, Mercedes-Benz India will implement a second price revision, adding an estimated 1.5% increase to the ex-showroom prices of all its models. This phased approach is designed to gradually absorb the impact of rising costs while minimising sudden shocks for prospective buyers.
For instance, the company has announced that even with the price adjustments, monthly EMIs for models like the GLA and GLC will witness only a marginal increase of around ₹2,000. This move is intended to retain customer confidence and make luxury car ownership more accessible despite the economic pressures.
Furthermore, Mercedes-Benz is also investing in sustainable practices within its production facilities, aligning with global standards for greener manufacturing. These efforts are expected to streamline costs over the long term, potentially stabilising prices for its premium models in the future.
With the launch of new models and ongoing localisation initiatives, Mercedes-Benz aims to maintain its position as a leader in the luxury car segment in India. The upcoming price hike, while significant, reflects broader economic realities and the brand’s commitment to sustaining its high standards of quality and innovation.
Why Mercedes-Benz India is Raising Prices
Mercedes-Benz India has attributed the decision to a significant 10% surge in foreign exchange rates over the past four months. The weakening of the Indian Rupee against major global currencies has escalated the cost of importing components and Completely Built Units (CBUs), prompting the company to adjust its pricing.While Mercedes-Benz has been absorbing a large portion of the rising costs, the German luxury carmaker said a partial pass-through to customers was unavoidable. To mitigate the impact, the company has been working to deepen its localisation strategies, thereby reducing its dependency on imported parts.
According to industry analysts, this price hike is reflective of global economic pressures, including inflation and currency instability, affecting luxury brands worldwide. Mercedes-Benz India’s move aims to balance the escalating costs while still offering competitive value in the premium segment.
Impact on Different Models
The two-stage hike will see varying adjustments across the model lineup. The initial phase, effective from June 1, 2025, will witness price increases ranging from ₹90,000 for the C-Class to ₹12.2 lakh for the top-of-the-line Mercedes-Maybach S 680. The GLA and GLC models are also expected to see substantial hikes, reflecting the broader cost adjustments.Come September 1, 2025, Mercedes-Benz India will implement a second price revision, adding an estimated 1.5% increase to the ex-showroom prices of all its models. This phased approach is designed to gradually absorb the impact of rising costs while minimising sudden shocks for prospective buyers.
Financial Schemes to Ease the Transition
In an effort to cushion the blow of the price hikes, Mercedes-Benz Financial Services has introduced tailored financing solutions aimed at keeping monthly EMI payments relatively stable. These schemes are specifically designed to ensure that the increase in vehicle cost does not significantly impact the monthly outflow for buyers.For instance, the company has announced that even with the price adjustments, monthly EMIs for models like the GLA and GLC will witness only a marginal increase of around ₹2,000. This move is intended to retain customer confidence and make luxury car ownership more accessible despite the economic pressures.
Efforts Towards Localisation and Sustainability
To combat rising import costs, Mercedes-Benz India has been intensifying its localisation efforts. By increasing the use of locally sourced components and expanding its domestic manufacturing capabilities, the company aims to reduce its exposure to global currency fluctuations.Furthermore, Mercedes-Benz is also investing in sustainable practices within its production facilities, aligning with global standards for greener manufacturing. These efforts are expected to streamline costs over the long term, potentially stabilising prices for its premium models in the future.
Looking Ahead: What Customers Can Expect
Despite the price adjustments, Mercedes-Benz India remains committed to delivering luxury and performance without compromise. The company’s strategy to introduce financial schemes is likely to ease the purchasing process for prospective buyers, even as global market conditions shift.With the launch of new models and ongoing localisation initiatives, Mercedes-Benz aims to maintain its position as a leader in the luxury car segment in India. The upcoming price hike, while significant, reflects broader economic realities and the brand’s commitment to sustaining its high standards of quality and innovation.
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