The intention of Mercedes-Benz India to raise the cost of its vehicles beginning in September 2025 is currently being considered. Just before the holiday season, the German premium automaker is predicted to raise its car prices by as much as 1.5 percent. This price increase, according to the manufacturer, would be intended to lessen the effects of the euro's strength against the rupee. It's interesting that this will be the third price increase for the OEM, since Mercedes-Benz has previously raised the prices of its automobiles twice this year, once in January and once in July.

Despite the price increase, Mercedes-Benz India's MD and CEO Santosh Iyer told the news agency PTI that he is optimistic that the drop in interest rates will somehow offset the monthly expenditure for consumers in equated monthly installments (EMIs). "Because of the euro, there is another price increase coming up in September." Iyer stated that the previous month has stayed at the 100 (INR) mark, and that has not altered. As a result, we will also need to implement a rise in September.

In addition, the Mercedes-Benz representative noted that about 80% of the company's new vehicle sales are financed. "Thus, despite the fact that the cost of the car has increased, we have tried to maintain the same EMIs." Therefore, it significantly aids in lessening the effects of price hikes, Iyer said. Additionally, he mentioned that there is still demand in the market and that as the economy improves, more individuals will want to purchase high-end vehicles. Considering the currency swings, buyers realize that the firm is unable to regulate prices, he said.

Iyer responded to a query about whether the company is experiencing production difficulties as a result of rare earth magnets by saying that the supply chain interruption hasn't yet had an impact on the company. "We also have enough stocks with us, so we are able to navigate and manage it," he said.

Iyer also pointed out that the company may experience little growth this year as a result of persistent geopolitical issues and other obstacles. The luxury car market has experienced greater growth this year, at about five to six percent, compared to the two to three percent increase in the entire passenger car market, he noted. "Certainly, one would like much higher growth rates, but given what's happening geopolitically around the globe, I believe that growth in the automotive sector alone is a positive sign as such," Iyer said.

Read Also: BMW Sees Global Highs, Asian Lows in 2025 Sales

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