If you are planning to buy a car in the new year, you may have to pay more. Mercedes-Benzes India has announced that it will increase the prices of its vehicle by up to 2% from January. The company said this decision was taken because its operating costs have gone up. Another major reason is the weakening of the Indian rupee compared to the euro, which makes importing parts and vehicles more expensive. According to Mercedes-Benz, this small price hike shows the impact of foreign exchange pressure on the luxury car industry in 2025. Buyers should keep this in mind before making their purchase.
Company explained the reason behind the price hike
The company explained that around 18 months ago, one euro was prices at about 104-105. This means the rupee has weakened by a sharp 15 to 18 percent against the euro. Because of this, the cost of importing parts and building cars in india has gone up significantly. At present, there is still a 10 to 15 percent gap between the fall in the rupee and the current car prices. to cover this difference and manage higher costs, the company says it has become necessary to increase vehicle prices in the coming months.
Company also explained that its localization strategy has helped control a large part of the rising costs. However, to maintain long-term business stability, this price adjustment has become necessary. Giving some relief to customers, Iyer said that continuous cuts in the RBI’s repo rate have allowed Mercedes-Benz Financial services to offer lower interest rates on car loans. Because of this, buyers will feel less pressure from the price increase. This means customers can still afford Mercedes-Benzes cars more easily despite the higher prices. the company believes that these financial benefits will help balance the impact of the price hike for people planning to buy a luxury car.
This Move by Mercedes-Benz India could also influence the wider luxury car market. Since foreign exchange rates are affecting the entire auto industry, other premium car makes may also feel pressure to raise their prices. There is a strong possibility that rival luxury brands will follow a similar path and announce prices hikes in the coming months. As a result, buying a luxury car in the future could become more expensive across the market, not just for Mercedes buyers.
