Mercedes-Benz May Raise Car Prices Quarterly in 2026

25 Dec 2025 CW Team

Mercedes-Benz India is considering quarterly price increases across its product portfolio in the next calendar year to offset the impact of the rupee’s depreciation against the euro, according to Managing Director and Chief Executive Officer Santosh Iyer.

The luxury carmaker has already announced a price hike of up to 2 per cent effective January 1, 2026. The move reflects sustained foreign exchange pressures, with the euro–rupee exchange rate remaining above the Rs 100 mark through 2025, well above historical averages.

Speaking on the sidelines of the FICCI Mercedes-Benz Bharat Innovation business ideas challenge programme launch, Iyer said the company is evaluating price hikes every quarter next year due to continued rupee weakness against the euro. He noted that around 18 months ago the exchange rate stood at about Rs 89 per euro, compared with nearly Rs 104–105 currently, translating into a depreciation of roughly 15–18 per cent.

While the January price increase has already been announced, Iyer indicated that further hikes would be required to absorb the full impact of currency depreciation. He added that there remains a gap of over 10–15 per cent between the effect of rupee depreciation and the price increases implemented so far.

To avoid a sharp impact on demand, the company plans to stagger the increases rather than implement a steep one-time adjustment. Although the exact quantum of quarterly hikes for 2026 has not been finalised, Iyer said each increase could be in the region of about 2 per cent.

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