Finance
Mercedes-Benz India to hike car prices on rising costs
Published by Global Banking and Finance Review
Posted on December 12, 2025
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 12, 2025
Dec 12 (Reuters) - Mercedes-Benz's India unit will increase the price of its cars by up to 2% starting January due to rising raw material and logistics costs, the luxury carmaker said on Friday.
The company said that the euro-rupee exchange rate has traded persistently above the 100 rupee ($1.11) mark this year, increasing operational costs.
The prolonged volatility "affects every aspect of our operations, from imported components for local production, to completely built units," Santosh Iyer, Mercedes-Benz India's MD and CEO said in a statement.
The company said it is considering further quarterly price adjustments to better align with current foreign exchange rates. It added that it is absorbing a majority of cost pressures and passing a nominal portion to customers.
Mercedes leads sales of luxury vehicles in India, followed by BMW and Tata Motors Passenger Vehicles-owned Jaguar Land Rover (JLR).
($1 = 90.3400 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Harikrishnan Nair)
Foreign currency refers to any currency that is not the domestic currency of a particular country. It is used in international trade and can fluctuate in value based on market conditions.
Operational costs are the expenses related to the day-to-day functioning of a business. This includes costs for raw materials, logistics, and other operational expenses necessary for production.
A luxury vehicle is a high-end car that offers superior comfort, quality, and performance compared to standard vehicles. These cars often come with advanced technology and premium features.
Price adjustment refers to the process of changing the price of a product or service, typically in response to market conditions, costs, or competition.
The euro-rupee exchange rate is the value of one euro expressed in Indian rupees. It fluctuates based on market dynamics, affecting import and export costs.
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