Mercedes-Benz India Vehicle Prices Set To Increase Across Entire Range From January 2026

Mercedes-Benz India has officially stated that it will raise prices for its entire range of vehicles by up to 2 percent starting January 1, 2026. The move comes in response to ongoing economic challenges in the luxury car segment. Rising input costs, logistical difficulties and persistent volatility in currency rates have been cited as key reasons behind this adjustment

According to the company the Euro-INR exchange rate has remained above ₹100 for most of 2025, which is significantly higher than historical averages. This has increased costs for imported components used in locally assembled vehicles as well as completely built units (CBUs) imported into India

Reasons Behind The Price Hike

The automaker highlighted multiple factors influencing this decision-

1. Currency Volatility

• The Euro has consistently traded above ₹100 impacting import costs for components and fully built vehicles
• This prolonged fluctuation affects production expenses and operational costs at multiple levels of the supply chain

2. Rising Input Costs

• Costs for materials and parts have increased making it more expensive to manufacture luxury cars

3. Logistical Challenges

• Transporting vehicles and parts within India and internationally has become costlier due to inflationary trends and fuel price fluctuations

4. Inflationary Pressure

• General inflation in the economy has further added to operational costs prompting the need for selective price adjustments

CEO Comments On Price Hike

Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, explained the decision-

“Currency headwinds have persisted longer than anticipated, with the Euro consistently trading over the ₹100 mark. This prolonged volatility impacts every aspect of our operations, from imported components for local assembly to completely built units. Rising input costs, logistical expenses, and inflation have significantly increased our overall operational costs”

He added that the continuous reduction in the RBI’s repo rate allows Mercedes-Benz Financial Services to pass benefits to customers, helping offset part of the price increase

Price Adjustment Varies By Model

The impact of the price hike will not be uniform across all Mercedes-Benz vehicles. The adjustment depends on the level of import dependency and the location of production-

• Imported Models (CBUs)- Vehicles with higher reliance on imported components such as the G 450d, GLS Maybach, AMG A 45 S and GT 63 S E-Performance, are expected to see higher price increases
• Locally Produced Vehicles- Models manufactured at the Chakan facility which is part of Mercedes-Benz’s global production network, will have smaller adjustments due to the advantages of local production
• Electric Vehicles- The price of EV models like the EQA 250, EQB SUV, EQE 500 4MATIC SUV, Mercedes-Maybach EQS 680 SUV, EQS 580 sedan, EQS SUV 450 and G 580 with EQ Technology will also be adjusted to account for imported components and technology costs

Mercedes-Benz India Vehicle Portfolio

The brand’s current portfolio in India covers a wide range of luxury cars and SUVs-

• Sedans and Luxury Cars- A Class, C Class, E Class Long Wheelbase, S Class, Mercedes-Maybach S 580
• SUVs and BEVs- EQS 580 sedan, EQS SUV 450, EQA 250, EQB SUVs, EQE 500 4MATIC SUV, Mercedes-Maybach EQS 680 SUV, G 580 with EQ Technology
• Imported CBUs- G 450d, GLS Maybach, AMG models from A 45 S to GT 63 S E-Performance

This diverse portfolio ensures that both premium petrol/diesel cars and electric vehicles are covered under the price adjustment

Customer Support Through Financing

Mercedes-Benz India is making efforts to support buyers despite the price hike-

• Financial Assistance- Customers using Mercedes-Benz Financial Services can benefit from lower interest rates due to the RBI’s repo rate reductions
• Mitigating Price Impact- This approach helps reduce the impact of the price increase on monthly EMIs for financed vehicles

Since a large percentage of Mercedes-Benz customers in India rely on financing, this step ensures that the price adjustment does not significantly affect vehicle affordability