Mercedes-Benz India will raise the prices of its cars by 1% to 1.5% in September 2025. This will be the third price hike this year, following earlier increases in January and July.
Why the price hike?
The company says the reason is the weakening Indian Rupee against the Euro. “The Euro has stayed at around 100 INR for the past month, and this affects our costs,” said Santosh Iyer, the MD and CEO of Mercedes-Benz India.
Impact on Buyers
Even though prices are rising, Iyer said that interest rates have come down, which helps customers keep their monthly EMIs stable. Around 80% of buyers choose to finance their Mercedes cars through loans.
“Even if the car price increases, we try to keep the EMI amount the same, so it doesn’t hurt customers much,” he added.
What about demand?
The company believes that demand will stay strong. As India’s economy grows, more people are interested in buying luxury cars. Iyer also mentioned that customers understand price hikes are needed due to global currency changes.
Supply Chain Status
There are global concerns about the supply of rare earth magnets (important for electric vehicle parts), but Mercedes-Benz India says they are not affected.
“We have good stock and have managed the supply chain well with help from our team in Germany,” Iyer said.
Growth Outlook
Even with challenges like global tensions, Mercedes-Benz India expects flat growth this year.
The overall passenger car market in India is growing at about 2-3%, but the luxury car segment is doing a bit better at 5-6% growth.
“Of course, we’d like to grow faster, but even small growth in such uncertain times is a good sign,” Iyer concluded.
