Mercedes-Benz raises prices in India: A strategic move to counter rising costs

In a significant development in the Indian luxury automotive market, Mercedes-Benz has announced a
price hike for its range of vehicles. The German luxury car manufacturer has decided to increase prices
in two phases, with the first hike applicable from June 1, 2025, and the second from September 1, 2025.
This move is aimed at offsetting the rising operational costs and maintaining business stability.

Price Hike Details

According to the company, the price increase will range from Rs 90,000 to Rs 12.2 lakh, depending on
the model. The C-Class will see a minimum price hike of Rs 90,000, bringing its starting price to Rs 60.3
lakh. On the other hand, the Mercedes-Maybach S-Class will experience the maximum price increase of
Rs 12.2 lakh, taking its price to Rs 3.60 crore. All prices are ex-showroom.

Reasons Behind the Price Hike

Mercedes-Benz has cited several reasons for the price increase, including a sharp rise in foreign
exchange rates since January this year. This has significantly impacted the cost structure of parts and
products, particularly for all-imported models. The company claims that it has been absorbing the
increasing costs so far, but it can no longer sustain this and needs to adjust its prices accordingly.

Advantages of Raising Prices in Two Phases

The company believes that raising prices in two phases will enable customers to plan their purchases
and make better financial decisions based on their requirements. According to Mercedes-Benz, the
difference in EMI will be less than Rs 2,000 for vehicles such as the GLC and GLC SUV. This phased
approach is designed to minimize the impact on customers and provide them with greater flexibility.

Impact on Customers

While the price hike may be a concern for some customers, Mercedes-Benz claims that it is transferring
only a marginal part of the cost increase to them. The company is committed to maintaining its business
stability and ensuring that its products continue to meet the high standards expected by its customers.

Market Analysis

The luxury automotive market in India is highly competitive, and price hikes can have a significant impact
on sales. However, Mercedes-Benz's decision to raise prices in two phases may help mitigate the impact
on customers and provide a degree of stability in the market.

luxury automotive market in India continues to evolve

Mercedes-Benz's decision to raise prices in India is a strategic move aimed at countering the rising costs
and maintaining business stability. While the price hike may be a concern for some customers, the
company's phased approach is designed to minimize the impact and provide greater flexibility. As the
luxury automotive market in India continues to evolve, Mercedes-Benz's move is likely to have a
significant impact on the industry.