Mercedes-Benz India announces price correction of up to 2% across model range from Jan 1, 2026
The luxury carmaker said the Euro-INR exchange rate has consistently remained above the INR 100 mark throughout the year, significantly higher than historical averages, creating prolonged cost pressures across its operations.
Pune, December 13: Mercedes-Benz India on Friday announced a price correction of up to 2% across its entire model range, effective January 1, 2026, citing sustained forex pressures, rising input costs and higher logistics expenses that have continued through 2025.
The luxury carmaker said the Euro-INR exchange rate has consistently remained above the INR 100 mark throughout the year, significantly higher than historical averages, creating prolonged cost pressures across its operations. These pressures impact both imported components used in local assembly as well as completely built units.
Despite absorbing a large part of the currency impact and inflationary costs, the company said a marginal price adjustment has become necessary to maintain long-term operational sustainability.
“Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the INR 100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production to completely built units,” said Santosh Iyer, managing director and chief executive officer, Mercedes-Benz India.
He added that rising material costs, higher logistics expenses and inflationary pressures have further increased the company’s overall cost base. “Mercedes-Benz continues to shield customers from the full impact of these factors by passing on only a nominal portion of the increased costs to the market,” Iyer said.
The company indicated that the quantum of price adjustment will vary across models, depending on the level of localisation and import dependency. Mercedes-Benz India is also evaluating the need for further quarterly price revisions to align more closely with prevailing forex conditions.
To mitigate the impact on customers, Mercedes-Benz Financial Services will continue to offer tailored financing solutions. With nearly 80% of Mercedes-Benz vehicles in India purchased through financing and MBFS facilitating around half of the brand’s total sales, financial products play a critical role in stabilising overall ownership costs.
“Thanks to the Reserve Bank of India’s continued repo rate reductions, Mercedes-Benz Financial Services has been able to pass on benefits to customers, significantly cushioning the effect of the price increase,” Iyer said.
The company said its localisation strategy remains a key lever in managing cost pressures, but sustained currency volatility and inflationary trends have necessitated the current price correction.
