Mercedes-Benz India Announces Price Hike Amid Rising Operational Costs

Mercedes-Benz India will raise the prices of its vehicles by up to 2% starting January, citing increasing raw material and logistics costs. The company said that the euro-rupee exchange rate, which has remained above ₹100 this year, has significantly driven up operational expenses, affecting both imported components and completely built units.

Managing Director and CEO Santosh Iyer noted that persistent currency volatility is impacting the company’s entire value chain. As a result, Mercedes-Benz India is evaluating the possibility of quarterly price adjustments to keep up with changing foreign exchange rates. Despite mounting pressures, the company emphasized that it is absorbing most of the increased costs and passing only a small portion on to buyers.

Mercedes-Benz continues to lead India’s luxury car market, ahead of rivals such as BMW and Tata Motors–owned Jaguar Land Rover. The planned price increase reflects ongoing challenges in the premium automotive segment, where global supply dynamics and currency fluctuations continue to shape pricing strategies.