Mercedes-Benz India Price Hike: Luxury Car Prices to Increase by up to 2 Percent From January 2026

Sharing this information the company cited that for most of this year, the Euro-Rupee exchange rate has stayed above the Rs 100 mark. This rise has added substantial pressure on the supply chain. The impact extends to imported components used for local assembly, along with CBUs brought directly into the country.

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The company also outlined that, despite an ongoing localisation strategy that absorbs a majority of these increased expenses, the company says a selective revision has become necessary to maintain long-term operational stability. Rising commodity prices, higher logistics costs and broader inflationary trends have also contributed to the decision.

Mercedes-Benz has also stated that with eight out of ten of its buyers in India opting for finance, the company’s financial arm; Mercedes-Benz Financial Services will roll out tailored solutions to offset any EMI changes triggered by the new prices. MBFS, which facilitates around half of the brand’s total sales in India, will update its portfolio of finance products to support customers transitioning into 2026.

The price correction applies to the full Mercedes-Benz India portfolio. Model-wise revisions will be shared closer to the effective date as dealers update their systems and finance calculations for January deliveries.

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India said, "Currency headwinds have persisted longer than we anticipated this year, with Euro consistently trading over INR 100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production, to completely built units. In addition, rising input costs, increasing logistical expenses, in combination with inflationary costs have significantly risen our overall operational costs. Thanks to RBI’s continuous repo rate reduction, enabling Mercedes-Benz Financial Services to pass on the benefits to end customers, thereby mitigating price increase effect to a large extent.”