Mercedes-Benz India may increase prices in early 2026, amidst inflation concerns

Mercedes cars may get more expensive by 10% in 2026

Iyer explained, “What happens starting next year is more interesting because we may have inflationary pressures. But for the luxury car market and for us, the exchange rate is a concern because we are at ₹104 to the Euro, and that means we will have to add 10 per cent-odd pricing. So we have reduced the price by 6 per cent, but by adding the price by 10 per cent, we may lose all the advantage under GST 2.0. So that’s something for next year, but right now, there is a strong animal instinct, and we should see a growth momentum for our sales in the current period.”

Also Read : Mercedes-Benz cars get more accessible after GST reduction

Price hikes are inevitable around the new year, but this time it will be a follow-up to the price reduction in the wake of the GST rationalisation. With luxury cars now taxed in a uniform 40 per cent slab, Mercedes-Benz cars have seen a reduction by up to ₹25 lakh, depending on the model. The reduction is also expected to boost the luxury vehicle sector at large after a flat growth rate throughout the first three quarters of the year.

Looking forward to best-ever festive period

Speaking about keeping the sales momentum going in a challenging market, Iyer said, I think we have been able to navigate quite well thanks to a lot of products and our strategy as well. We saw Q2 as a very big uptick in what was happening. On the positive side, electrics (EV) doubled with more than 156 per cent growth to an 8 per cent share. We don’t participate actively in the entry-level electric segment. So there for sure, you know, we may not be able to participate there. But I think 8 per cent was still a very strong number when you talk about electric. But I think the TEVs (top-end vehicles) have been the story for us. A significant growth in the top-end vehicle segment, a 20 per cent growth there, and a 10 per cent growth in the core segment that we saw. And now, because of the postponement of purchases, August was a bad month, but we feel that all of this should now come back with a best-ever festival period.”

Iyer further explained that the market is showing signs of a positive buying sentiment with multiple factors. The GST-led reduction is the biggest contributor towards a more customer-friendly market, followed by a more disposable income, and the interest rates continue to remain low. This combination, Iyer said, should give a strong momentum to the market.

Mercedes-Benz has had an eventful year with a host of launches, right from the AMG GT 63 Pro to the more recent CLE 53 Coupe. While the automaker’s focus has been on the top-end vehicles, it will make a comeback to the more accessible segments with the new CLA electric sedan scheduled for launch early next year. There’s also the new GLC Electric, which recently made its debut at the Munich Motor Show, and is likely to arrive in India next year.

Check out Upcoming Cars in India 2025, Best SUVs in India.

First Published Date: 20 Sept 2025, 15:02 pm IST