Luxury gets a reality check, but only a gentle one.
Pune: Mercedes-Benz India, the country’s most desirable luxury carmaker, has announced a price correction of up to 2% across its entire model range, effective 1st January 2026. The move comes as the Euro continues to cruise stubbornly above the ₹100 mark throughout 2025, refusing to downshift despite hopes of calmer currency roads ahead.
While luxury cars are built to glide effortlessly, global economics clearly prefers a few speed bumps.
Why the Price Adjustment?
Mercedes-Benz says the correction reflects sustained forex headwinds, rising material and commodity costs, higher logistics expenses, and inflationary pressures that have quietly but steadily increased operational costs over the year.
The Euro-INR exchange rate staying consistently above ₹100 has had a cascading impact—right from imported components used in locally assembled cars to completely built units (CBUs) shipped into India. Despite Mercedes-Benz’s strong localisation efforts, the company admits that some realities can no longer be parked aside.
Importantly, Mercedes-Benz is absorbing the majority of these cost pressures, passing on only a nominal portion to customers to ensure long-term business sustainability.
What Changes for Customers?
- Ex-showroom prices to increase by up to 2% across the Mercedes-Benz portfolio from January 1, 2026
- Adjustment quantum will vary by model, depending on local content versus import dependency
- The increase is aimed purely at offsetting operational cost pressures, not revving up margins
In short, your Mercedes isn’t suddenly becoming expensive—it’s just responding politely to global economics.
Mercedes-Benz Financial Services to Cushion the Impact
Understanding that luxury ownership is as much about peace of mind as horsepower, Mercedes-Benz Financial Services (MBFS) is stepping in to soften the impact.
With nearly 80% of Mercedes-Benz cars in India purchased through financing, and MBFS facilitating around 50% of the brand’s total sales, tailored financial solutions will continue to play a crucial role in stabilising ownership costs.
Thanks to RBI’s continued repo rate reductions, MBFS will pass on benefits to customers, helping mitigate EMI increases to a large extent—proving once again that smart finance can be as reassuring as a three-pointed star on the bonnet.
What the Company Says
Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said:
“Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the ₹100 mark. This prolonged volatility affects every aspect of our operations—from imported components to CBUs. Combined with rising input, logistics and inflationary costs, this has significantly increased our overall operational expenses.
At the same time, RBI’s repo rate reductions have enabled Mercedes-Benz Financial Services to pass on benefits to customers, helping offset the impact of price increases to a large extent.”
Mercedes-Benz India is also evaluating quarterly price adjustments going forward, aiming to gradually align prices closer to prevailing forex realities—without shocking customers or diluting the brand’s value proposition.
In essence, while the world’s most admired luxury carmaker is nudging prices slightly, it’s doing so with restraint, responsibility, and a firm grip on customer trust. Because even when the currency shifts gears, the Mercedes-Benz promise remains in cruise control.
