India’s most desirable luxury carmaker Mercedes-Benz India today announced a pricing adjustment across its entire model range, effective from 1st January 2026. The price correction capped at 2%, reflects sustained forex pressures that have characterised the luxury automotive landscape throughout 2025. In addition, rise in input costs, commodity prices, increased logistical expenses in combination of inflationary pressures have been creating significant pressure on the company’s bottom line, necessitating a price correction.
Throughout 2025, the Euro-INR exchange rate has traded persistently above INR 100 mark, representing a significant deviation from earlier period. This currency environment has created substantial cost pressures across the supply chain, affecting both imported components for local assembly, as well as import of CBU (completely built vehicles). Despite the company’s aggressive localisation strategy, which continues to absorb bulk of increased costs, a selective price adjustment has become essential to maintain operational sustainability.
MBFS structures solutions for affordability:
Recognizing that product substance and price underpins the luxury automotive market, Mercedes-Benz Financial Services has developed tailored financial products to mitigate any EMI impact from this price adjustment. With 80% of Mercedes-Benz purchases in India involving financing, and MBFS directly facilitating approximately 50% of total brand sales, Financial Services plays a pivotal role in driving ownership ecosystem for Mercedes-Benz.
