Mercedes-Benz to Hike Prices Again in September 2025: Euro Fluctuation Blamed
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According to multiple reports, currency depreciation is at the core of Mercedes-Benz India’s decision. The strengthening of the Euro against the Indian Rupee has affected the brand’s cost structure. While the company manufactures over 30% of its cars locally, around 70% of the components are still sourced from Europe, making the business significantly vulnerable to currency fluctuations.
Company officials point out that when pricing was originally set, the Euro was valued between Rs 89–90. However, the exchange rate has recently surged, crossing Rs 98 and even touching Rs 99 per Euro for the first time. This change in the exchange rate directly impacts the cost of production and, consequently, vehicle prices in India.
He elaborated that the company prefers not to implement the full increase at once, instead opting for a phased approach to ensure that the market can absorb the changes without shock.
“We had a very strong May, and June also looks solid. During the festive period, we aim to bring even more cheer with our offerings,” Iyer stated.
Company officials point out that when pricing was originally set, the Euro was valued between Rs 89–90. However, the exchange rate has recently surged, crossing Rs 98 and even touching Rs 99 per Euro for the first time. This change in the exchange rate directly impacts the cost of production and, consequently, vehicle prices in India.
Company’s Phased Price Strategy in 2025
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, addressed the situation in a statement shared via PTI. He confirmed that Mercedes-Benz has already revised its price brackets twice this year—first in January and again in June, with each hike around 1.5%. He further explained that a third price revision, likely around 1.5%, is being planned for September 2025.He elaborated that the company prefers not to implement the full increase at once, instead opting for a phased approach to ensure that the market can absorb the changes without shock.
Sales Performance Remains Strong
Despite these ongoing price adjustments, Mercedes-Benz continues to post strong performance in the Indian market. According to Iyer, the company witnessed excellent sales in May, and June is also showing promising trends. He expressed optimism that the upcoming festive season will further boost sales momentum.“We had a very strong May, and June also looks solid. During the festive period, we aim to bring even more cheer with our offerings,” Iyer stated.
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