Mercedes-Benz India to raise prices by ~2% from April 1 amid forex volatility, rising input costs

Luxury carmaker Mercedes-Benz India has announced a price correction of around 2% across its vehicle portfolio in the country, effective April 1, 2026, as the company looks to offset the impact of currency fluctuations and rising input costs.

The revision comes at a time when automakers operating in India continue to grapple with sustained volatility in foreign exchange markets, particularly the weakening of the Indian rupee against the euro. For premium manufacturers such as Mercedes-Benz, which rely significantly on imported components and completely built units for certain models, currency movements have a direct bearing on overall cost structures.

Announcing the decision, Brendon Sissing, Vice President, Sales & Marketing, said, “Starting April 1, we will be implementing a price correction of around 2 per cent across our portfolio. This decision is largely driven by continued forex volatility, particularly the sustained depreciation of the rupee against the euro, along with rising input costs”

He went on to add, “While we always strive to absorb cost pressures, some price adjustment becomes necessary to maintain business sustainability. Our focus remains on ensuring minimal impact on customers while continuing to deliver best-in-class products and experiences."

The decision comes close on the heels of Audi India announcing a price hike across its model range in the country. The German luxury carmaker said it will increase the ex-showroom prices of its vehicles by up to 2% from April 1, citing rising input costs and currency fluctuations.

The latest announcements follow a series of price revisions undertaken by luxury carmakers in recent years as cost pressures intensified. In 2025, Mercedes-Benz India implemented a staggered price increase across its model range, citing sharp movements in foreign exchange rates and higher costs of imported components. Similar adjustments have been seen across the premium segment as global supply chains and commodity prices remained volatile.

As per auto industry analysts, luxury brands with high import exposure often recalibrate prices periodically to offset currency fluctuations, higher logistics costs and elevated raw material prices.

"Since a significant portion of components and fully built vehicles used in the premium segment are imported, movements in the euro–rupee exchange rate tend to have a direct impact on margins," said Puneet Gupta, Director-S&P Global Mobility.

Market observers indicate that other luxury carmakers such as BMW Group, Lexus and Jaguar Land Rover could also consider similar price revisions in the near term, given comparable cost pressures, although these companies have not made any formal announcements so far.