Mercedes-Benz India has announced a price correction of up to 2% across its entire model range, effective January 1, 2026. The company said the adjustment is driven by continued forex pressure, with the Euro-INR exchange rate remaining above the ₹100 level throughout 2025—significantly higher than historical averages. Rising material costs, inflationary pressures and increased logistics expenses have further added to operational costs.
Mercedes-Benz India said it is absorbing the majority of the cost impact and passing on only a marginal portion to customers. The degree of adjustment will vary by model depending on local content versus import dependence. The company indicated that additional quarterly price reviews may be required in 2026 if forex conditions remain elevated.
Managing Director & CEO Santosh Iyer said prolonged currency volatility has affected operations ranging from imported components for local manufacturing to completely built units. He added that RBI’s repo rate reductions have enabled Mercedes-Benz Financial Services (MBFS) to mitigate the price impact for customers.
MBFS will continue offering tailored financing solutions to stabilise overall ownership costs. With 80% of Mercedes-Benz India’s retail involving financing and MBFS supporting about 50% of all sales, the company said financial products remain central to maintaining affordability.
