The price increase, which will take effect in September 2025, is being considered by Mercedes-Benz India. The German premium automaker, which has just introduced two sports cars in India, the AMG GT 63 4MATIC and GT 63 PRO 4MATIC Coupe, at prices of ₹3 crore (ex-showroom) and ₹3.65 crore (ex-showroom), respectively, has announced that the OEM is about to implement another price increase for its Indian passenger vehicle lineup.

The Managing Director and CEO of Mercedes-Benz India, Santosh Iyer, told PTI that the company's choices about raising prices are being influenced by negative variations between the Euro and the Rupee. 2025 will see the third price increase in a row. In January and June of this year, Mercedes-Benz raised the price of its cars by 1.5% each time.

As the Rupee continued to decline against the Euro, driving up the cost of imported parts, the manufacturer asserted that its expenses had risen by 13% over the previous year. The Indian branch of the German high-end automobile manufacturer imports around 70% of its parts. Yesterday evening, one Euro was worth ₹9.9, and it was the first time the Euro has broken the ₹98 barrier. We had set prices for our cars when the exchange rate was between 89 and 90 rupees per euro. Even though we manufacture over 30% of our vehicles locally, 70% of them still have European content, and if the EURO rises versus the Rupee, the price of the Mercedes-Benz range of cars will increase, Iyer said. The third increase in price, which will be 1.5%, will occur in September, as we are doing it in phases and cannot do it all at once.

Mercedes-Benz expects retail sales to increase.

Even with the projected price increase for its vehicles, the high-end automaker sounded upbeat about retail sales, since the Reserve Bank of India (RBI) has twice this year declared interest rate reductions. "Mercedes-Benz Finance, our non-banking finance firm, has also decreased its interest rates. Mercedes-Benz vehicle prices have risen in June, and around 80% of our automobiles are currently financed. However, the EMIs are still the same, he stated. The Reserve Bank's interest rate reductions are supporting sales of the Mercedes-Benz lineup of automobiles, according to Iyer.

Iyer also stated that because the geopolitical macroeconomic climate in 2025 is not favorable, the business wants to be very cautious in its forecasts and demands. "Right now, we had an excellent May in terms of sales, and June also seems to be strong and hopefully, during the festive period, we will bring back even more cheer in terms of sales for his company," Iyer said.

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