Mercedes-Benz cars in India to be more expensive from September, up to a 1.5% price hike on cards

Mercedes-Benz India is mulling the plan to slap a price hike on its cars that would be effective from September 2025. The German luxury car manufacturer is expected to increase the pricing of its cars by up to 1.5 per cent right ahead of the festive season. The automaker has hinted that this price hike would be a move to mitigate the impact of a weak rupee against the euro. Interestingly, this is going to be the third price hike for the OEM as Mercedes-Benz has already increased prices of its cars twice this year, first in January and then in July.

Speaking to news agency PTI, Mercedes-Benz India's MD and CEO, Santosh Iyer, has expressed hope that despite the price hike, the reduction in interest rates will somehow balance the monthly outgo for the consumers in equated monthly instalments (EMIs). "There is another price hike coming up in September, because of the euro. If you see, the last one month has remained at the 100 mark (INR), and that has not changed. Therefore, we will have to undertake an increase as well in September," Iyer further said.

The Mercedes-Benz official also stated that around 80 per cent of the company's new car sales are financed. "So, when you look at the EMIs, we have tried to keep the same, though the price of the car has gone up. So, that helps us to mitigate the impact of price increase to a large extent," Iyer added. He also noted that there is still demand in the market, and with the economy growing, people will like to buy luxury cars. Buyers understand that prices are beyond the control of the company, considering the currency fluctuation, he said.

When asked if the company is facing production issues due to rare earth magnets, Iyer said that the company is not yet affected by the supply chain disruption. “We also have sufficient stocks with us, so we are able to navigate and manage it," he added.

Iyer also noted that the company's growth could be flat this year due to ongoing geopolitical issues and other challenges. He said that while the overall passenger vehicle market has been growing by two-three per cent, the luxury car segment has seen higher growth at around five-six per cent this year. "Of course, one would love much higher growth rates, but considering what's happening worldwide geopolitically, I think growth in the automotive industry by itself is a positive sign as such," Iyer stated.

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