Mercedes-Benz hints at further price hike in September
Mercedes-Benz India is planning to increase car prices again in September by 1.5%, citing the sharp rise of the Euro against the Indian Rupee. This will be the third price hike this year, following similar increases in January and June.
According to Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, the company has already revised its prices twice in 2025. “If you see, yesterday night, one Euro is equal to Rs 99 and it is the first time that Euro has breached the Rs 98 mark. We had priced our cars when one Euro was at Rs 89-90. With Euro going up, even though we localise more than 30 per cent of our cars, 70 per cent of the cars still have European content and when the EURO goes up (against Rupee), the price (of Mercedes-Benz range of cars) will go up,” he explained.
Despite the price increase, Iyer remains optimistic about retail sales, thanks to the Reserve Bank of India’s interest rate cuts and lower EMIs. “We have non-banking finance company, Mercedes-Benz Finance and this arm has also reduced the interest rates. About 80 per cent of our cars are financed and today, if you look at June, the price of cars (of Mercedes-Benz) has gone up. But the EMIs remain the same,” he said.
The company is also expanding its luxury retail footprint with plans to open 30 boutique-style ‘Atelier Experience’ outlets in 2025. These outlets will offer upgraded infrastructure, technology, and an exclusive personalisation corner to customers. “This is the 11th such facility. We will be opening 19 more in the next 5 months. These provide Atelier Experience to customers,” Iyer said.
The ‘Atelier Experience’ is a new step in Mercedes-Benz’s luxury offerings, focusing on top-end vehicle customers like Maybach and AMG. The company plans to shift its current 100 touch points to new format stores in the future, considering customer expectations.
