Mercedes-Benz India is set to raise car prices once again in September 2025, marking its third hike this year. The luxury automaker plans to increase prices by up to 1.5%, just ahead of the festive season, as it grapples with the weakening Indian rupee against the euro.
The company has already raised prices twice this year — once in January and again in July.
Speaking to PTI, Santosh Iyer, MD and CEO of Mercedes-Benz India, confirmed the hike. “There is another price increase coming in September due to the euro. The rupee has hovered around the 100 mark for over a month now. So, we have no choice but to adjust,” he said.
However, Iyer remains optimistic. He believes lower interest rates could help offset the impact of higher prices for buyers by keeping EMIs stable. He noted that 80% of new Mercedes-Benz cars are financed, which gives the brand flexibility to maintain affordability for consumers. “Even though car prices are going up, we’re working to keep EMIs unchanged. That helps reduce the overall burden,” he added.
Iyer also pointed out that demand remains strong. With India’s economy expanding and a growing appetite for premium vehicles, he believes buyers are aware that price shifts are tied to global currency trends and are beyond the company’s control.
On the production front, Mercedes-Benz India has not yet been impacted by global supply chain disruptions, particularly those related to rare earth magnets. “We have adequate inventory and are managing well,” said Iyer.
That said, the company anticipates flat growth this year, largely due to geopolitical uncertainties. While the overall passenger car market is growing at 2-3%, the luxury car segment has posted stronger growth at around 5-6%. Iyer added, “Given the global climate, any growth in the automotive industry is a healthy sign.”
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
