Mercedes-Benz India announced on December 12, 2025, that it will hike vehicle prices by up to 2% starting January 2026. This change is aimed at offsetting the impact of the Indian rupee weakening against the euro. The company said this price rise reflects ongoing foreign exchange pressures that have affected the luxury car market throughout 2025. Santosh Iyer, MD and CEO of Mercedes-Benz India, said, "Currency headwinds have persisted longer than we anticipated this year, with the euro consistently trading over the ₹100 mark. This prolonged volatility affects every aspect of our operations, from imported components for local production to completely built units." The Pune-based automaker explained that higher costs are hitting both imported parts used in local assembly and fully built imported vehicles. Despite a strong localisation effort to absorb most cost increases, the company said, "a selective price adjustment has become essential to maintain operational sustainability." Rising input costs, commodity prices, and logistics expenses combined with inflation have squeezed the company’s net profit, making the price revision necessary. Mr. Iyer also noted, "Thanks to RBI's continuous repo rate reduction, enabling Mercedes-Benz Financial Services to pass on the benefits to end customers, thereby mitigating the price increase effect to a large extent." This announcement came a day after BMW India said it is considering a price hike from January due to similar rupee weakness against the euro.