Price Adjustment Due to Currency Fluctuations
Mercedes-Benz India has announced a price increase of 1–1.5% on its vehicle lineup, effective from September 2025. This marks the third price hike this year, following similar adjustments in January and July. The primary reason cited for this increase is the sustained depreciation of the Indian rupee against the euro, which has impacted the cost of imported components and materials.
Impact on Customers and Market Outlook
Despite the price hike, Managing Director and CEO Santosh Iyer expressed confidence in maintaining customer demand. He noted that reduced interest rates have helped keep equated monthly installments (EMIs) manageable for customers, with 80% of new vehicle purchases being financed. Additionally, Iyer emphasized that the luxury car segment continues to show resilience, with a growth rate of approximately 5–6% this year, outpacing the overall passenger vehicle market’s 2–3% growth.
Strategic Measures and Future Plans
Mercedes-Benz India remains optimistic about its growth prospects, attributing this to strong economic fundamentals and customer understanding of the necessity for price adjustments due to currency fluctuations. The company has also managed supply chain challenges effectively, ensuring the availability of critical components. Looking ahead, Mercedes-Benz India plans to continue its expansion efforts, including the introduction of new models and enhancement of customer service touchpoints across the country.
Source: The Times Of India