Mercedes-Benz India to hike prices by up to 2%, effective January 1

German luxury carmaker Mercedes-Benz India will increase prices across its model range by up to 2 per cent, effective January 1, 2026, as persistent foreign exchange pressure and a weakening rupee push up import and operating costs.

 

The company said the euro-INR exchange rate has stayed above the Rs 100 mark through 2025, well above historical averages, significantly raising its cost base.

 

Mercedes-Benz added that it has so far absorbed much of the currency impact, passing on only marginal increases to customers, but the sustained depreciation of the rupee has made a price adjustment unavoidable. The company is also considering quarterly price revisions through 2026 to gradually align with prevailing forex levels.

 

The announcement comes at a time when India’s passenger vehicle market is bracing for broad-based price hikes in January, now almost an annual occurrence, as automakers grapple with elevated input and commodity prices, forex volatility, and lingering demand uncertainty in rural markets.

 

Two of the country’s largest automakers, Tata Motors and Mahindra & Mahindra (M&M), have already indicated that they will raise prices early next year. Honda Cars India has also confirmed that it is evaluating a January price increase.

 

January revisions by automakers typically range between 2 and 4 per cent, depending on the model.