Mercedes Benz doubles price hike for luxury cars due to 10% rupee depreciation

Mercedes Benz India has announced a two-phase price hike for its vehicles. The first phase will see a 2% hike from June 1, 2025, followed by a further 1.5% hike from September 1, 2025.

The main reason for this price hike is the depreciation of the rupee against the euro by about 10% in the last five months (January to May 2025). This exchange rate depreciation has significantly increased the cost of manufacturing CBU (completely imported) vehicles for the company. Thus, the company is passing on a small price hike to its customers to share the additional cost. In particular, the prices of high-end models like GLS and Maybach S 680 have been increased by up to ₹12.2 lakh.

This is designed to help customers plan their vehicle purchases in advance and manage their financial burden.

3 main reasons for the price hike

Rupee-Euro exchange rate depreciation

The Indian rupee has depreciated significantly against the Euro in 2025. Specifically, the exchange rate, which was ₹1 = €0.0105 in January, fell to ₹1 = €0.0095 by May. This represents a depreciation of about 10%. This exchange rate depreciation puts additional financial burden on companies that are borrowing in euros.

CBU import costs

Companies like Mercedes-Benz import some vehicles in CBU (Completely Built Unit) form, rather than directly manufacturing them in India. Such vehicles, such as the GLS and EQS SUV, are directly affected by foreign economic fluctuations. The depreciation has increased the import costs of these vehicles, which has led to higher prices for these models.

Increased domestic production

Mercedes Benz manufactures some models like the C-Class and E-Class in its factories in India (this is called “Localization”). The foreign exchange rate and import costs are lower for these locally manufactured models. Hence, the price hike for these local models is only 1.5%.

2025 Price List (Ex-Showroom)

Financing Facilities & EMI Tips

EMI Assistance

Although the price of the Mercedes-Benz GLE 300d model has increased by ₹1.5 lakh, the monthly installment (EMI) of the customers has increased by just ₹2,000 per month. This helps the customers to make regular payments without any sudden financial burden.

Mercedes Benz Financial Services (MBFS)

MBFS is a financial services company for customers. It offers various benefits and easy payment plans for its customers.

Star Agility Scheme

Under this scheme, customers can avail up to 80% of the total cost of the vehicle and can also avail a discount on the remaining value of the vehicle at the last stage. This gives peace of mind to the customers in financial management.

Exchange Bonus

Customers who want to exchange their old Mercedes vehicles for a new one are being offered an exchange bonus of up to ₹5 lakh. This is a major benefit that reduces the cost of buying a new vehicle.

Expert Analysis: How will this impact customers?

• CBU Models (Completely Imported Cars): Vehicles like Maybach, GLS are directly imported from abroad. These are subject to high import costs and the impact of foreign exchange rates. Due to this, these types of cars face a price hike of around 5 to 7 percent. This can be a huge financial burden for the customers.
• Domestically produced models: Cars like C-Class, E-Class which are manufactured in India have lower import costs. So the price hike in this category of cars is very low, around 1.5 to 2 percent. This is a fair opportunity for customers.
• Expert Opinion: According to estimates published by Autocar India, the price of electric vehicles is unlikely to increase in the third quarter of 2025. This means that lower prices or discounts are expected for electric cars.

Conclusion

If you are planning to buy a Mercedes car, you can save up to 2% by buying it before June 1. The MBFS Star Agility program will help you reduce the cost. If you want to wait, you can expect September discounts. Don’t forget to ask for the AMG driving experience at the dealer!