Mercedes-Benz vehicles in India to experience a price increase from September, with an anticipated inflation of up to 1.5% across the range.
In a recent announcement, Mercedes-Benz India has revealed a price increase of up to 1.5% for its vehicles, effective from September 2025. This marks the third price adjustment for the luxury car manufacturer this year, following hikes in January and July. The decision was made in response to the Indian rupee's depreciation against the euro, which has led to a 13% rise in import costs for the company, as approximately 70% of the components used in their cars are imported[1][2][3][4].
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, expressed that despite the price rises, reduced interest rates in the financing environment are helping to keep equated monthly instalments (EMIs) balanced and manageable for buyers[4]. This means that while car prices may increase, the burden on monthly payments may not rise proportionately due to favorable financing conditions.
The luxury car market in India has been thriving this year, with growth rates of around 5-6%. This is higher than the overall passenger vehicle market, which has been growing by 2-3%[5][6]. Iyer acknowledged that the current growth in the automotive industry is a positive sign despite global challenges, emphasizing that even higher growth rates are desirable but are notable given the current geopolitical issues[7].
Mercedes-Benz India has managed to maintain sufficient stocks to avoid any potential supply chain issues, including those related to rare earth magnets[8]. The demand for luxury cars remains strong, and with the economy growing, people are likely to continue purchasing these vehicles[9].
| Aspect | Details | |-------------------------|-----------------------------------------------| | Price hike percentage | Up to 1.5% in September 2025 | | Reason for hike | Depreciation of INR against Euro, increased import costs | | Frequency of hikes in 2025 | Third increase (January, July, September) | | Impact on EMIs | Likely balanced due to reduced interest rates |
[1] https://www.mercedes-benz.co.in/ [2] https://economictimes.indiatimes.com/ [3] https://www.livemint.com/ [4] https://www.thehindubusinessline.com/ [5] https://www.autocarindia.com/ [6] https://www.cardekho.com/ [7] https://www.hindustantimes.com/ [8] https://www.bloombergquint.com/ [9] https://www.financialexpress.com/
- The price hike in the automotive industry, specifically for Mercedes-Benz vehicles, has been influenced by the depreciation of the Indian rupee against the euro, leading to a rise in import costs for the company.
- Despite the price increases, the finance sector's reduced interest rates are helping to keep equated monthly instalments (EMIs) balanced and manageable for buyers in the transportation industry, such as those purchasing luxury cars from Mercedes-Benz.
