Mercedes-Benz India recently announced that it will be increasing the prices of all its cars by approximately 2% starting January 2026. This increase will apply to all models, whether sedans, SUVs, or electric vehicles. The company has cited several economic and production-related reasons for this decision. Let's understand the complete details in more depth.
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| Specification | Details |
|---|---|
| Price Hike | ~2% from Jan 2026 |
| Models Affected | Sedans, SUVs, EVs |
| Reason | Euro appreciation, weak rupee, raw material & logistics costs |
| Local vs Imported | Local: slightly lower increase; Imported: full hike |
| Example | ₹1,00,00,000 → ₹1,02,00,000 |
| Financing | MBFS easy EMI & new plans |
| Market Impact | High-end luxury car segment |
| Buying Tip | Buy in Jan 2026 to avoid price hike |
Euro Impact on Mercedes‑Benz Prices
The biggest reason is the appreciation of the Euro. In 2025, the rupee weakened significantly against the Euro, which considerably increased the cost of imported parts and completely built imported units (CBUs). In addition, rising costs of raw materials and logistics have also impacted prices, but the pressure from the Euro exchange rate is clearly the dominant factor.
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Inflation and Supply Chain Effects
I should mention that inflation and some supply chain issues have also played a significant role in increasing car prices, which is why Mercedes-Benz has stated that the price increase for its locally assembled models might be somewhat less compared to the more expensive imported models.
Estimated Price Increase by Model
If I were to tell you about the price, if a car costs ₹1,00,00,000 today, a 2% increase would bring its price to approximately ₹1 crore 2 lakh. I learned from my brother that the increase might vary slightly depending on the model.
MBFS Easy EMI Plans
I've learned from Mercedes that Mercedes-Benz Financial Services (MBFS) will be offering customers new financing options and streamlined EMI plans to mitigate the impact of the increased prices. This means you'll be able to buy the car on installments, making it easier to get your dream car.
Impact on India’s High-End Car Market
Mercedes-Benz is a leading brand in the luxury car market in India, and this price increase will impact some segments of the high-end car market. This will be a crucial decision for those planning to buy a car in the new year, as many new models are launched around that time. It remains to be seen how this decision will play out for Mercedes-Benz.
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If you are also planning to buy a Mercedes-Benz luxury car, then making your purchase in January might be beneficial for you, as the prices of all models are likely to increase by approximately 2% in the new year. So, buy your dream car as soon as possible.
