Mercedes-Benz India to Hike Prices by Up to 2% from January 2026

As per news reports, Mercedes-Benz India will raise prices by up to 2% on all models from 1 January 2026.  

The revision will apply to ex-showroom prices and will differ across models, depending on localisation levels and the share of imported parts. The new rates will be applicable to all deliveries made from the start of the year. 

Euro-INR Exchange Rate  

The company said the price change is linked to the Euro-INR rate staying above ₹100 for most of 2025.  

This level is higher than previous years and has increased the cost of importing components used in local assembly, as well as fully built vehicles. The extended period of currency volatility has affected sourcing across the supply chain. 

Operating Costs  

Alongside forex movements, Mercedes-Benz India noted higher input costs, commodity prices, and logistics expensesthrough the year.  

These increases, combined with broader inflation, have kept operating costs elevated. The company said it is absorbing most of the rise internally and passing a smaller portion through the January adjustment. 

Financing Footprint  

Around 80% of Mercedes-Benz vehicles sold in India are financed, with Mercedes-Benz Financial Services accounting for nearly half of these loans.  

Lower lending rates following recent RBI repo rate cuts are expected to reduce the effect of the price change on monthly instalments, as financing institutions adjust their interest rates. 

Quarterly Reviews Under Study for 2026 

The company is also considering quarterly price assessments next year based on how the Euro-INR rate moves.  

These reviews may lead to smaller adjustments during the year rather than a single, broader annual revision. Any changes will depend on the duration and scale of currency fluctuations. 

Industry Backdrop 

On 11 December, PTI reported that BMW India is preparing for a price increase from next month because of the weaker rupee against the Euro, reflecting similar cost pressures in the luxury segment. 

Read More: BMW Eyes to Raise Prices in January to Counter Weak Rupee Impact! 

Conclusion 

The January increase marks a response to ongoing currency and cost pressures, with additional adjustments possible if conditions persist into 2026. 

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