Mercedes-Benz India Announces Two-Stage Price Hike Amid Forex Pressures

New Delhi — Mercedes-Benz India has announced a two-phase hike in the ex-showroom prices of its models, citing sharp fluctuations in foreign exchange rates as the primary driver behind the move. The luxury automaker will implement the price revision in two stages: the first effective from June 1, 2025, and a second increase of up to 1.5% on September 1, 2025.

According to the company, the decision was made to help customers plan their purchases more effectively and minimize the financial burden through flexible financing solutions offered by Mercedes-Benz Financial Services (MBFS). The phased revision comes as the Euro-INR exchange rate has depreciated by approximately 10% in the past four months, substantially raising the cost of imported components and Completely Built Units (CBUs).

“We have been absorbing the brunt of the forex impact so far, and increasing localization efforts. However, due to sustained operational cost pressures, we are now compelled to pass on a minimal portion of these increases to the market,” said Santosh Iyer, Managing Director & CEO of Mercedes-Benz India.

Despite the price hike, the company is assuring customers that monthly Equated Monthly Instalments (EMIs) will remain largely unaffected, thanks to innovative financing plans like STAR AGILITY and other flexible ownership programs. For example, EMI differences on popular models such as the GLA and GLC are expected to be under Rs 2,000.

The second phase of the price correction will see an additional increase of up to 1.5% across the model lineup starting September 1, 2025.

Mercedes-Benz emphasized that despite the price adjustments, its continued focus on localization and value-added services will ensure that luxury car buyers face only a minimal increase in ownership costs.

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