After major GST-driven price cuts, Mercedes-Benz confirms 2% hike from January 2026

Mercedes-Benz India will increase prices by up to 2% from January 2026, citing cost pressures, months after reducing prices following the GST revision.

Mercedes-Benz India will increase prices across its entire model range by up to 2% starting 1 January 2026. The company confirmed the revision in an official statement, pointing to continued forex volatility and higher input, commodity and logistics costs.

The price hike will vary depending upon the model

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Why has Mercedes-Benz announced a price hike?

Through 2025, the Euro–INR exchange rate remained above the INR 100 mark, well above long-term averages. Mercedes-Benz said this has added pressure across its supply chain, affecting both imported components used in locally assembled models and fully imported CBUs. Despite ongoing localisation efforts that continue to absorb most of the rising costs, the brand said a selective price adjustment has become necessary.

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Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, noted that the currency situation has stayed challenging for longer than expected, influencing everything from sourcing parts to bringing in completely built units. He added that recent repo rate cuts by the RBI have helped the company pass on some financial benefits through Mercedes-Benz Financial Services, reducing the overall impact for customers.

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The company said that it is still absorbing a large portion of the cost increase. The final price hike will vary across models depending on whether they are produced locally or imported.

January price hike follows earlier GST-driven price cuts

This announcement comes a few months after the brand reduced prices following changes to GST regulations for luxury cars. Under the revised tax structure, the overall tax burden on luxury vehicles dropped to 40%, down from the earlier 45–50% range. That revision allowed Mercedes-Benz to cut prices across its lineup, from around ₹1.6 lakh on the A-Class Limousine to as much as ₹25 lakh on the AMG G 63.