Mercedes-Benz India to hike price by 1-1.5% in September
Mercedes Benz India is reportedly planning to hike prices by 1-1.5% from September to mitigate the impact of a weak rupee against the euro. The auto maker has already hiked prices twice this year, first in January and then in July.
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The luxury car maker Mercedes Benz India is reportedly planning to hike prices by 1-1.5% from September to mitigate the impact of a weak rupee against the euro, according to its MD and CEO Santosh Iyer.
The auto maker has already hiked vehicle prices twice this year, first in January and then in July.
Read more: Mercedes-Benz India records sales of 4238 units, driven by Core and Top-End luxury vehicles
"There is another price hike coming up in September, because of the euro. If you see, the last one month has remained at the 100 mark (INR), and that has not changed. Therefore, we will have to undertake an increase as well in September,” Iyer told PTI in an interaction.
When asked if the increase in prices could impact sales, Iyer stated that the reduction in interest rates is somehow balancing the monthly outgo for buyers in equated monthly instalments (EMIs).
Around 80% of the company’s new car sales are financed, he said.
"When you look at the EMIs, we have tried to keep the same, though the price of the car has gone up. So, that helps us to mitigate the impact of price increase to a large extent,” Iyer said.
He noted that there is still demand in the market, and with the economy growing, people will like to buy luxury cars.
Buyers understand that prices are beyond the control of the company, considering the currency fluctuation, he noted.
When asked if the company is facing production issues due to rare earth magnets, Iyer said, ”If you look at the supply chain, as far as we are concerned, we are not affected yet by any of these topics, because we are managing it well. We also have sufficient stocks with us, so we are able to navigate and manage it”.
"I think our colleagues back in Stuttgart (Germany) have managed it well, so we don’t have any issues there.” Iyer noted that the company’s growth could be flattish this year due to ongoing geopolitical issues and other challenges.
The PTI report further quoted Iyer saying that while the overall passenger vehicle market has been growing by 2-3%, the luxury car segment has seen higher growth at around 5-6% this year.
"Of course, one would love much higher growth rates, but considering what’s happening worldwide geopolitically, I think growth in the automotive industry by itself is a positive sign as such,” Iyer stated.
"And we all have to realise the average selling price is going up on the mass market side due to regulation and on the luxury side, due to currency fluctuations,” he added.
It is to be noted that the luxury car maker retailed 4,238 new Mercedes-Benz cars in the April-June 2025 period, growing by 10 percent. The best-ever sales performance in Q1 FY 25-26 was achieved with robust demand for Core and Top-End Luxury vehicles.
Top-End Luxury segment sales grew by 20 percent with strong demand for the S-Class, Mercedes-Maybach Night Series, G 580 with EQ Technology, EQS SUV and AMG G 63.
AMG G 63 ‘Collector’s Edition’ witnessed an overwhelming response from G- Class aficionados, the recently launched AMG GT 63 PRO is already sold out for the remaining year, stated the company in its statement.
The Core segment that comprises C-Class, E-Class LWB sedans, the GLC and GLE SUVs continued its strong performance with 60 percent contribution to the overall sales volumes of Mercedes-Benz, growing by 10 percent in Q1 FY 25-26.
Mercedes-Benz ‘Entry Luxury’ portfolio offers product with high substance in respective segments, having higher value proposition for luxury customers, highlighted the company in its statement. In Q1 FY 25-26, Mercedes-Benz ‘Entry Luxury Segment’ marginally declined.
