Mercedes-Benz India on Friday said it will hike ex-showroom prices of its models, ranging between Rs 90,000 and Rs 12.2 lakh in two stages this year, in order to partially offset the impact of significant forex fluctuations.
Price corrections in June and September will range between Rs 90,000 for a C-Class to Rs 12.2 lakh for the Mercedes-Maybach S 680.
The luxury car market leader plans to hike model prices by around 1-2 per cent from June 1 and by 1.5 per cent from September 1, this year.
In an interaction with PTI, Mercedes-Benz India MD and CEO Santosh Iyer said the two-stage price hike, entailing a total increase of around 3 per cent, has been initiated to minimise the financial impact for buyers.
"Over the last four months, the rupee has depreciated in the market, with a 10 per cent drop in the Euro to INR exchange rate, causing significant cost pressures on our business operations," he noted.
This steep swing in the Euro-INR rate has been severely impacting the cost of imports, for both components and CBU cars, he added.
"Though we have been absorbing most of the exchange rate difference to date and increasing our localisation initiatives, we are now compelled to pass on a small portion of it to customers," Iyer said.
The continuous rise in operational costs, influenced by forex movement, necessitates this slight price correction, which the company will pass on to the market, for sustained business of the company and franchise partners, he added.
"This staggered approach for price revision, along with the value-added flexible financing programmes from MBFS (Mercedes-Benz Financial Services), will not only minimise any financial burden, but will also offer customers a robust leeway to plan their purchases, best suited to their requirements," Iyer stated.
This two-stage price revision announcement allows customers to plan their purchases and finance schemes that best suit their requirements, instead of facing a steep upward price revision owing to the current pricing challenges in the market, the company said.
The price revision is triggered by a steep increase in forex rates since January 2025, severely impacting the cost structure of components and products, specifically the CBUs, the luxury car market leader added.
Audi India has already announced to hike prices by up to 2 per cent from May 15 in order to offset the impact of exchange rate and input cost.
BMW has also hiked prices of BMW and MINI car range by up to 3 per cent with effect from April 1, this year.
It has also undertaken a similar price hike in January this year.
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