Mercedes-Benz India on Friday announced it will increase vehicle prices by up to 2 per cent starting January, citing the weakening of the Indian rupee against the Euro.
The luxury carmaker said the price revision, capped at 2 per cent, reflects persistent forex pressures that have shaped the luxury automotive segment throughout 2025.
"Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the Rs 100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production to completely built units," Mercedes-Benz India MD and CEO Santosh Iyer said.
The Pune-based company explained that the currency situation has triggered substantial cost pressures across its supply chain, impacting both imported components for domestic assembly and the import of completely built units (CBUs).
Despite its robust localisation strategy, which has absorbed most of the rising costs, the automaker said a selective price adjustment has become necessary to sustain operations.
Rising input costs, commodity prices, and logistics expenses, coupled with broader inflationary pressures, have significantly strained the company’s bottom line, necessitating the move, it added.
"Thanks to RBI's continuous repo rate reduction, enabling Mercedes-Benz Financial Services to pass on the benefits to end customers, thereby mitigating the price increase effect to a large extent," Iyer stated.
Meanwhile, on Thursday, BMW India indicated it is also considering a vehicle price hike from January in response to the rupee’s weakening against the Euro.
