Shift Gears, Not Budgets: Mercedes-Benz India To Jack Up Prices In Two Stages

After mass-market carmakers announced price revisions due to rising input costs, luxury carmakers are now following suit. Mercedes-Benz India has announced a two-phase revision in the ex-showroom prices of its entire vehicle lineup, citing sharp fluctuations in foreign exchange rates that have driven up the cost of imports. 

The first wave of price increases is set to come into effect on June 1, 2025, with a subsequent hike of 1.5% scheduled for September 1, 2025.

The company attributed the move to a significant depreciation—close to 10%—in the Euro against the Indian Rupee over the past four months. According to RBI data, the Euro's exchange rate in terms of the Indian rupee has been witnessing a continuous fall this year. 

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This currency slide has increased the cost of importing both components and fully built units (CBUs), despite Mercedes-Benz India’s efforts to mitigate the impact through higher localisation levels in its production process.
“We’ve structured the price revision in phases to ease the impact on our customers,” said Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, adding, “While we’ve managed to absorb a large part of the forex-related cost escalation so far, the sustained rise in operational expenses has necessitated this moderate adjustment.”

The price increase, effective from June 1, will vary between Rs 90,000 and Rs 12.2 lakh across different models, depending on the variant and specifications.

A further price revision of up to 1.5 percent will be applied across the lineup starting September 1. However, the company noted that the effect on monthly EMIs will be minimal for popular models like the GLA and GLC, with the increase expected to stay under Rs 2,000.

It may be recalled that carmakers such as Maruti Suzuki, Hyundai, Kia, Tata Motors, and Honda Cars India implemented price revisions effective April 1, 2025, citing rising input costs and higher operational expenses.