Mercedes-Benz To Hike Vehicle Prices By Up to 2 Percent From January 2026

Mercedes-Benz has announced a price hike of up to 2 percent for its entire model range. The changes in the prices of the models will take effect from January 1, 2026. The step from the brand has come in response to ongoing economic factors affecting the luxury car market. The automaker cited "sustained current volatility, rising input costs, and persistent logistical challenges" as the reason for the upward revision of prices.

Additionally, the brand claimed that the Euro-INR exchange rate has remained above INR 100 throughout 2025, higher than historical averages. This impacts costs for imported components used in local assembly and completely built units (CBUs). These have raised overall operational costs for the company. The brand further claimed that Mercedes-Benz India has absorbed many of these increases through its localization strategy. Still, a selective adjustment became necessary for business sustainability.

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Commenting on the subject, 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," he added.

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The adjustment amount varies depending on the model. Specifically, the models with higher import dependency face larger changes. Locally produced vehicles benefit from the company's Chakan facility. This facility forms part of Mercedes-Benz's global production network.

The brand's portfolio in the Indian market include models like A-Class, C-Class, E-Class Long Wheelbase, S-Class, and Mercedes-Maybach S 580. Electric vehicles produced there cover EQS 580 sedan and EQS SUV 450. Imported CBUs feature G 450d, GLS Maybach, and AMG models from A 45 S to GT 63 S E-Performance. The BEV lineup also includes EQA 250, EQB SUVs, EQE 500 4MATIC SUV, Mercedes-Maybach EQS 680 SUV, and G 580 with EQ Technology.