Mercedes-Benz India to Hike Prices by Up to 2% From January 2026 as Forex, Input Costs Rise

Mercedes-Benz India will increase prices across its entire portfolio from 1 January 2026, citing persistent cost pressures stemming from currency volatility and rising operational expenses. The hike, capped at 2%, will apply to all models sold in the country, the company said.

The automaker has been navigating a tough financial landscape through 2025 as the euro remained above the ₹100 mark for most of the year—far higher than historical averages. This has inflated the cost of imported components, which continue to be a significant part of both locally assembled and fully imported Mercedes-Benz cars.

Alongside the currency impact, the company pointed to elevated input costs, higher commodity prices and costlier logistics as additional reasons for the upcoming increase. Despite these pressures, Mercedes-Benz said it is absorbing a large portion of the burden and passing only a “nominal” share to buyers.

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With nearly four out of five Mercedes-Benz customers opting for financing, the company’s in-house lender—Mercedes-Benz Financial Services (MBFS)—is expected to play a central role in cushioning the impact of the hike. MBFS is preparing tailored loan structures aimed at minimizing changes in EMIs, especially as recent repo rate cuts have eased lending costs.

The company also indicated that depending on how global currency trends evolve, further quarterly price revisions may be on the table. Executives said long-running forex pressures, coupled with inflation, are now affecting virtually every segment of operations, from imported assemblies to completely built units.

Mercedes-Benz India, which completed three decades in the country last year, operates one of the largest luxury car manufacturing facilities in India and continues to expand its localisation strategy. However, the automaker noted that even with localisation absorbing a large proportion of the cost surge, maintaining a sustainable cost structure has become increasingly difficult.