Mercedes-Benz India Considers Quarterly Price Hikes in 2026

Mercedes-Benz India may move to a quarterly price revision cycle in 2026 as it looks to cushion the impact of a weakening rupee against the euro, according to the company’s Managing Director and CEO, Santosh Iyer.

Speaking to PTI on the sidelines of the FICCI Mercedes-Benz Bharat Innovation business ideas challenge programme launch on Tuesday, Iyer said the sharp depreciation of the rupee has made frequent price adjustments unavoidable. The luxury carmaker has already announced a price hike of up to 2 per cent across its model range from January 1, 2026.

The company attributes the increase to persistent foreign exchange pressures, with the euro-rupee exchange rate staying above the ₹100 level through 2025, well above historical norms. Around 18 months ago, the euro was trading at roughly ₹89, compared to about ₹104–105 currently, Iyer said, amounting to a depreciation of nearly 15–18 per cent.

While the January hike has been confirmed, Iyer indicated that further increases are likely through the year. “We are considering price hikes every quarter next year, and that is because of rupee devaluation to the euro," he said, adding that the company is still absorbing a significant portion of the currency impact.

According to him, there remains a gap of over 10–15 per cent between the total effect of the rupee’s depreciation and the price increases announced so far. To avoid a sharp, one-time correction that could hurt demand, Mercedes-Benz India plans to stagger the hikes.

Although the exact quantum for each quarter is yet to be finalised, Iyer said individual increases could be in the region of 2 per cent each, spread across 2026.

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