Mercedes-Benz India will raise prices across its full range by up to 2 percent from January 1, 2026. The company says the step is needed because of rising input costs and persistent logistics issues. The Euro-INR exchange rate has also stayed above the INR 100 level this year, which increases costs for imported parts and fully built vehicles. The price change will vary across models, and the company says models with more imported content will face a higher rise.
Rising Costs Push Mercedes-Benz Toward a Price Review
The company says the exchange rate has remained above INR 100 for most of 2025. This has created extra pressure on its local operations and imported units. Mercedes-Benz India uses many imported parts for its local assembly work. These parts become costlier when the currency stays weak.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, says the exchange rate issue lasted longer than expected. He says, “Currency headwinds have persisted longer than we anticipated this year, with Euro consistently trading over INR 100 mark.” He adds that this issue affects many parts of the company’s work. It affects imported components, local production, and fully built units that arrive from global plants.
The company also faces higher costs for raw materials and transport. These costs have risen across the sector this year. The firm says inflation has added yet another layer of pressure on operations. These factors together created the need for a fresh price review.
The company also says rising logistics costs have become a challenge. Moving parts and vehicles across borders has grown more expensive. The company says this affects its supply chain planning for the Indian market.
Company Says It Absorbed Most Costs but Cannot Do More
Mercedes-Benz India says it has absorbed a large part of these rising costs through its local strategy. It has also increased the level of localization at its Chakan plant. This helps lower import needs and keeps costs stable. Yet the company says it cannot absorb the full increase without harming its business.
The firm says that the price change will stay limited to a nominal range. The increase will be up to 2 percent across the full range. The actual rise for each model will depend on its import content. Models with heavy import use will see the highest rise. Locally built models will face a smaller change.
Iyer says inflation, logistics, and input costs have all increased. He says, “These costs have significantly raised our overall operational costs.” He also says the company is trying to balance its need to protect operations with its plan to keep luxury cars accessible.
The company says it may consider quarterly reviews in 2026. These reviews will help it adjust to foreign exchange rates faster. The firm says it wants to avoid large price shocks for buyers.
Price Change to Affect All Model Lines Across the Portfolio
The company offers a wide range of luxury vehicles in India. This range includes locally built sedans and SUVs. It also offers electric models and high-end units imported as completely built vehicles.
Local models include the A-Class, C-Class, E-Class long wheelbase, and the S-Class. The Chakan plant also builds the EQS 580 and the EQS SUV 450. These models will see smaller increases compared to imported models.
Imported units include the G 450d, GLS Maybach, and many AMG models. These rely heavily on imported parts and global plant production. So, these models may face higher changes from January.
The company also has a growing line of electric SUVs and sedans. These include the EQA 250, EQB, EQE 500 4MATIC SUV, Maybach EQS 680 SUV, and G 580 with EQ Technology. Many of these arrive as fully built units. So, they will also face a higher price rise.
Mercedes-Benz leads luxury car sales in India. BMW and Jaguar Land Rover follow behind. The company says it will continue to monitor the currency and cost situation.
