Mercedes-Benz cars to go dearer again in September 2025, third time in this calendar year.
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Check Offers Mercedes-Benz India is looking at another price hike, which will be enforced in September 2025. The German luxury car manufacturer that just launched two sports cars in India, namely the AMG GT 63 4MATIC and GT 63 PRO 4MATIC Coupe, priced at ₹3 crore (ex-showroom) and ₹3.65 crore (ex-showroom), respectively; has revealed that the OEM is about to enforce another price hike for its India passenger vehicle portfolio.
Speaking to PTI, Santosh Iyer, Managing Director and CEO at Mercedes-Benz India, said that adverse fluctuations of the Euro against the Rupee are impacting the OEM’s price hike decisions. This is going to be the third price hike in 2025. Earlier this year, in January and June, Mercedes-Benz increased the price of its cars, each time by 1.5 per cent.
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The automaker has claimed that it had faced a 13 per cent increase in cost over the past year as the Rupee continued to weaken against the Euro, inflating the cost of imported components. The Indian arm of the German luxury carmaker imports about 70 per cent of its components. “If you see, yesterday night, one Euro was equal to ₹9,9 and it is the first time that the Euro has breached the ₹98 mark. We had priced our cars when one Euro was at ₹89-90. With Euro going up, even though we localise more than 30 per cent of our cars, 70 per cent of the cars still have European content and when the EURO goes up against Rupee, the price of the Mercedes-Benz range of cars will go up,” Iyer said, while also adding, “The third one (increase in price) equal to 1.5 per cent will come in September, because we cannot pass this in one go and we are doing it in phase wise,” he said.
Mercedes-Benz is hopeful of upbat retail sales
Despite the proposed price hike for its cars, the luxury car manufacturer sounded optimistic on retail sales with the Reserve Bank of India (RBI) announcing interest rate cuts twice this year. “We have a non-banking finance company, Mercedes-Benz Finance, and this arm has also reduced the interest rates. About 80 per cent of our cars are financed, and today, if you look at June, the price of Mercedes-Benz cars has gone up. But the EMIs remain the same,” he said. Iyer added that the interest rate cuts announced by the Reserve Bank are helping the sales of the Mercedes-Benz range of cars.
He also said that 2025 is not an easy year from a geo-political macro economy environment, and therefore, the company wants to be a big conservative when it comes to demand and forecasts. “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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First Published Date: 29 Jun 2025, 09:09 AM IST
