Mercedes to Hike Vehicle Prices by Up to 2% from January

Mercedes-Benz India on Friday said it will hike vehicle prices by up to 2 per cent from January in order to offset the impact of weakening rupee value against the Euro.

The price correction, capped at 2 per cent, reflects sustained forex pressures that have characterised the luxury automotive landscape throughout 2025, the luxury car market leader said in a statement.

"Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the Rs 100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production to completely built units," Mercedes-Benz India MD and CEO Santosh Iyer said.

The currency environment has created substantial cost pressures across the supply chain, affecting both imported components for local assembly, as well as import of CBU (completely built vehicles), the Pune-based automaker said.

Despite the company's aggressive localisation strategy, which continues to absorb the bulk of increased costs, a selective price adjustment has become essential to maintain operational sustainability, it added.

Rise in input costs, commodity prices, and increased logistical expenses, in combination with inflationary pressures, have been creating significant pressure on the company's bottom line, necessitating a price correction, the company said.

"Thanks to RBI's continuous repo rate reduction, enabling Mercedes-Benz Financial Services to pass on the benefits to end customers, thereby mitigating the price increase effect to a large extent," Iyer stated.

On Thursday, BMW India announced that it mulls hiking vehicle prices from January as the Indian rupee weakens against the Euro.