Luxury Gets Pricier: Mercedes-Benz India Shifts Gears on Price Tags

Image Source: The Hindu Business Line

Mercedes-Benz India is raising the price of cars by 1 to 1.5 percent from September 2025, its third price hike of the year. This is in the wake of ongoing currency volatility and higher import costs.

Key Highlights
- The hike in price follows earlier hikes in January and July
- Persistent rupee depreciation against the euro has made imported components more expensive
- Around 70 percent of Mercedes-Benz India's parts are sourced from Europe, despite the ongoing localization policy
- The euro has just broken the ₹99 barrier, down from the ₹89–₹90 range used for earlier price models.

Effect on Buyers
- Monthly EMIs remain constant even post-hike, due to the reduction in interest rates by both the Reserve Bank of India and Mercedes-Benz Finance
- Approximately 80 percent of Mercedes new vehicles are financed, and that helps cushion the impact for customers
- CEO Santosh Iyer mentioned that customers are aware of the need for price revisions based on global currency fluctuations.

Market Outlook
- Mercedes-Benz India expects level growth throughout the year in spite of geopolitical tensions and economic turmoil
- Luxury car segment continues to beat the broader passenger vehicle market, growing at 5–6 percent versus 2–3 percent
- It is optimistic regarding holiday season sales in the current quarter and expects showroom footprint growth

Supply Chain Status
- No disruption reported despite global alarm at rare earth magnets - Healthy inventory levels, supported by the Stuttgart headquarters, ensuring smooth operations.

Sources: Economic Times, Times of India, The Hindu Business Line, Devdiscourse, MSN News, Telegraph India, CarAdvice.