Mercedes-Benz India plans price hike each quarter in 2026 to offset adverse forex impact

The company had stated that the price adjustment reflects the ongoing forex challenges as euro-rupee exchange rate consistently remains above Rs 100-mark in 2025, significantly higher than historical averages

New Delhi: Mercedes-Benz India is considering hiking prices of its products every quarter in the next calendar year to offset the adverse impact of rupee depreciation against the euro, its Managing Director and CEO Santosh Iyer said on Tuesday.

The company has already announced plans to hike prices of its products by up to 2 per cent from January 1, 2026.

The price adjustment reflects the ongoing forex challenges as euro-rupee exchange rate consistently remains above Rs 100-mark in 2025, significantly higher than historical averages, it had stated.

"We are considering price hike every quarter next year, and that is because of rupee devaluation to euro," Iyer told PTI here on the sidelines of FICCI Mercedes-Benz Bharat Innovation business ideas challenge programme launch.

He said about 18 months back, the exchange value was Rs 89 to a euro and now it's around Rs 104-105.

"That is more than 15-18 per cent of depreciation," he noted.

While the company has already announced price hike from January, Iyer said there will be subsequent increases "to absorb the huge depreciation".

Iyer said there is more than 10-15 per cent gap between the impact of rupee depreciation and price hike. "So we are spreading (the price hike), otherwise the demand may get also affected," he added.

Iyer said while the company has not exactly finalised the quantum of price hike expected on each quarter of 2026, it could be around 2 per cent each.