Mercedes-Benz India to hike prices up to 2% from January 2026 amid Euro-INR volatility

Mercedes-Benz India has announced a price correction across its entire model range effective 1 January 2026, citing persistent currency volatility and rising input costs. The company said the widening gap between the INR and the Euro, which has remained above the Rs 100 mark throughout 2025, has exerted significant pressure on its supply chain.

In a statement, the automaker noted that the currency environment has increased the cost of imported components used for local assembly as well as fully built imported vehicles, prompting the need for selective price adjustments.

Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, said the company will implement ex-showroom price revisions of up to 2% across its portfolio from January. While Mercedes-Benz has aggressively expanded localisation to soften the impact, Iyer said a partial price correction is essential for maintaining operational sustainability.

The increase is also driven by higher material costs, inflationary pressures and logistics expenses, the company added. Mercedes-Benz said it continues to absorb the “majority of cost pressures,” passing only a nominal portion to buyers.

“Currency headwinds have persisted longer than we anticipated, with the Euro consistently trading above ₹100,” Iyer said. “This prolonged volatility affects every aspect of our operations—from imported components for local production to completely built units. Combined with rising input and logistics costs, our overall operational expenses have increased substantially.”