Mercedes-Benz India has announced a price increase of up to 2% across its entire vehicle range, effective January 1, 2026. Driven by a strong Euro–Rupee exchange rate (staying above ₹100), rising input costs, and logistical expenses, this move impacts everything from the A-Class to the Maybach. Discover how this affects your purchase and how financing can offset the cost.
What’s Happening: Mercedes Price Hike Effective Jan 1, 2026
Mercedes-Benz India has officially confirmed an upward price revision of up to 2% across its entire portfolio, starting January 1, 2026. This adjustment follows a challenging 2025 where foreign exchange volatility and rising operational costs squeezed margins for the luxury car market leader.
Key Fact: The hike applies to all deliveries made from the start of the new year, regardless of when the booking was placed (unless price protection was explicitly offered).
Why Mercedes is Raising Prices: The Key Drivers
According to Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, several macroeconomic factors have necessitated this “selective” price correction:
- The ₹100+ Euro Benchmark: The Euro has consistently traded above the ₹100 mark throughout 2025 (recently hovering near ₹106), significantly higher than historical averages. This increases the cost of both imported kits (CKD) and fully built units (CBU).
- Higher Input & Logistics Costs: Global inflation has driven up the price of high-precision electronics, rare materials, and shipping.
- Partial Cost Absorption: Mercedes-Benz stated it is still absorbing a significant portion of these costs, passing on only a nominal percentage to the consumer to maintain market competitiveness.
Which Models Are Most Affected?
While the hike is capped at 2% across the board, the actual “on-road” impact will vary:
- Locally Assembled Models: Popular cars like the C-Class, E-Class LWB, GLC, and GLA are cushioned by Mercedes’ aggressive localization strategy at their Pune plant, likely seeing a more moderate adjustment.
- Imported CBUs (Performance & Ultra-Luxury): High-end models such as the AMG series, Maybach, and the G-Wagon are directly exposed to the Euro-INR volatility and may see the full 2% impact.
What This Means for Indian Luxury Buyers
- Cost of Ownership: On a flagship model costing ₹1.5 Crore, a 2% hike adds roughly ₹3 Lakh to the ex-showroom price.
- Financing as a Buffer: Roughly 80% of Mercedes-Benz cars in India are financed. With recent RBI repo rate reductions, Mercedes-Benz Financial Services (MBFS)—which handles about 50% of the brand’s loans—is passing on lower interest rates to help keep EMIs stable.
- Quarterly Reviews: The brand has hinted at moving toward quarterly price assessments in 2026. This means prices could fluctuate more frequently based on the real-time strength of the Rupee.
Strategic Buyer Tips for 2026
- Finalize Before Jan 1: If you are in the final stages of a decision, booking and taking delivery before the year-end is the most effective way to avoid the hike.
- Leverage MBFS: Ask about “Agility” or “Star Agility+” plans. These tailored financial products are designed to offset price increases by offering lower monthly outflows and guaranteed buy-back values.
- Monitor the Competition: Following Mercedes’ lead, BMW India has already signaled a potential price hike, and Audi India is reportedly evaluating a similar move.
Final Thought
The 2026 price revision is a strategic response to sustained “currency headwinds.” While a 2% increase is moderate compared to previous years, it signals that the era of annual price stability is giving way to a more dynamic, currency-linked pricing model.
Stay tuned with Motozite for the latest insights, price trackers, model-wise impact analysis and expert advice on buying luxury cars in India in 2026.
