Mercedes-Benz India is weighing the option of raising vehicle prices every quarter in the next calendar year to cushion the impact of the rupee’s depreciation against the euro, Managing Director and CEO Santosh Iyer said on Tuesday.
The luxury carmaker has already announced a price hike of up to 2 per cent across its product range, effective January 1, 2026.
The proposed adjustment comes amid persistent foreign exchange pressures, with the euro-rupee exchange rate remaining above the Rs 100 mark through 2025, well above historical averages, the company had said earlier.
"We are considering price hike every quarter next year, and that is because of rupee devaluation to euro," Iyer told PTI on the sidelines of the FICCI Mercedes-Benz Bharat Innovation business ideas challenge programme launch.
Highlighting the sharp currency movement, he said that around 18 months ago the exchange rate stood at Rs 89 to a euro, which has now weakened to around Rs 104-105.
"That is more than 15-18 per cent of depreciation," he noted.
Although the company has already announced a price increase from January, Iyer said further hikes would follow "to absorb the huge depreciation".
He added that there is currently a gap of more than 10-15 per cent between the impact of rupee depreciation and the price hikes announced so far. "So we are spreading (the price hike), otherwise the demand may get also affected," Iyer said.
While the exact extent of the quarterly price increases for 2026 has not yet been finalised, Iyer said they could be around 2 per cent each.
