Mercedes-Benz to increase prices for third time in last 4 months

Different models of Mercedes-Benz cars are parked at the company’s vehicle assembly plant in Chakan, in Maharashtra

Country’s largest luxury cars maker Mercedes-Benz India on Thursday said that it was planning for another price hike because of volatility in the market and macroeconomic factors across the globe.

The company meanwhile, reported a decline of around 13 per cent year-on-year (y-o-y) in its first quarter sales to 4,775 units (compared to 5,412 units same period last year) because of lower volume sales in entry-level cars.

However, in terms of fiscal year sales, it reported a growth of four per cent y-o-y to 18,928 units, buoyed by strong demand for the top-end luxury and steady demand for its core segment.

Market will grow slightly

“The market has grown hardly by three per cent (in FY25), but we have grown by four per cent. The market will grow slightly or remain flat mostly for the year because on one side it is sentiment driven issue, on the other side macroeconomy. The exchange rate is still high as most of us are pegged to the euro and at ₹95 to a euro, we have to again look at price increases,” Santosh Iyer, Chief Executive Officer and Managing Director, Mercedes-Benz India told businesslin

The company has already taken one price increase in January, and the second one in March already for a couple of models, he said. “Now we have to do it again for other models as well because of the increasing cost, considering the way the euro to the rupees going in.”

Cut in EMIs

On the positive side, the Reserve Bank of India (RBI) rate cut should hopefully translate to customer and also reduce their equated monthly instalments (EMIs) which should again drive affordability and people should be able to buy cars, he said.

“So I think we have big signals in the market and therefore, I would rather put the growth as moderate expectations than higher expectations for rest of the year,” Iyer added.

Published on April 10, 2025