Mercedes-Benz India has confirmed a price increase of up to 2 percent across its entire range, effective January 1, 2026, on all ICE and electric models. The hike will apply to all vehicles, including electric models, and will reflect in the ex-showroom prices. The exact increase will vary from model to model, depending on factors such as localisation levels and the share of imported components. This revision follows a year marked by cost pressures that the company says it has absorbed for as long as possible. All deliveries made from the start of the new year will follow the revised prices.
Exchange Rate Pressure Drives The Increase
The primary reason behind the price hike is the sustained weakness of the rupee against the euro. Mercedes-Benz India has pointed out that the Euro-INR exchange rate has remained above the ₹100 mark for most of 2025. This prolonged volatility has raised the cost of importing both completely built units and components used in locally assembled vehicles. Even models assembled at the brand’s Pune facility rely on imported parts, which means they are not immune to currency movements. As a result, the impact of the exchange rate has spread across the portfolio rather than being limited to niche imports.
Rising Input & Logistics Costs Add To The Burden
Apart from foreign exchange challenges, Mercedes-Benz India has also cited higher input costs and increasing logistics expenses as key contributors. Commodity prices, transportation charges, and general inflation have all pushed up operational costs during the year. According to the company, these increases affect every stage of the supply chain, from sourcing components to delivering finished vehicles. While the brand has absorbed a large part of these expenses internally, the January 2026 revision passes on a limited portion to customers to maintain long term viability.
Financing Support To Ease Impact On Buyers
Mercedes-Benz believes the effect of the price hike on customers will be softened by favourable financing conditions. The company noted that around 75–80 percent of its vehicles in India are purchased using finance, and Mercedes‑Benz Financial Services supports about 40–50 percent of these cases. Recent repo rate reductions by the Reserve Bank of India in 2025 have also lowered borrowing costs for many auto loan customers. This could help offset higher vehicle prices through reduced monthly instalments. Looking ahead, the company is also evaluating quarterly price reviews in 2026, depending on how currency conditions evolve, instead of relying only on a single annual adjustment.
