Mercedes-Benz India has announced plans to raise car prices every quarter in 2026 to offset the impact of rupee depreciation against the euro. Starting January 1, 2026, prices will increase by up to 2 percent across all models, with further quarterly adjustments expected to stabilize forex pressures
Mercedes-Benz India is preparing for a structured series of quarterly price hikes in 2026, citing sustained rupee weakness against the euro as the primary driver. The company’s Managing Director and CEO, Santosh Iyer, confirmed that the luxury carmaker will begin with a 2 percent increase across its product range effective January 1, 2026, followed by similar adjustments each quarter.
The decision comes amid persistent foreign exchange challenges, with the euro-rupee exchange rate hovering above the Rs 100 mark throughout 2025, compared to Rs 89 just 18 months earlier. This depreciation has significantly raised import costs, prompting the automaker to adopt a phased approach to price adjustments rather than imposing steep hikes at once.
Key Highlights
-
Mercedes-Benz India will implement a 2 percent price hike across all models starting January 1, 2026
-
Quarterly increases of around 2 percent are being considered to offset forex volatility and rupee depreciation
-
The euro-rupee exchange rate has weakened from Rs 89 to Rs 104–105 over the past 18 months, creating a 15–18 percent gap
-
CEO Santosh Iyer emphasized that quarterly hikes will help bridge the forex impact while avoiding sharp demand disruption
-
The company aims to balance profitability with customer retention by spreading adjustments over the year
-
This move reflects broader industry challenges, as luxury carmakers dependent on imports face mounting currency risks
The phased strategy highlights Mercedes-Benz India’s effort to maintain market stability while safeguarding margins in a volatile currency environment. By opting for incremental hikes, the company seeks to minimize consumer shock and sustain demand in India’s growing luxury automobile segment.
Sources: Economic Times, Business Standard, Telegraph India, Free Press Journal, PTI News