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Mercedes-Benz Cars To Get Costlier In India: 2% Price Hike From April 2026
Mercedes-Benz is set to hike prices for all its models by 2% starting from April 1, 2026. Earlier, the German luxury carmaker increased its prices in January 2026, making this the second major price hike announced by the brand this year.
Mercedes-Benz Cars Price Hike
According to a report by Autocar India, the German luxury car manufacturer has announced a 2% price hike across its entire model lineup in India. Depending on the model and segment, prices could increase by ₹89,000 to ₹7.22 lakh. Mercedes-Benz's most affordable offering in India is the A-Class, while the brand's most expensive models belong to the AMG performance lineup.
Following the introduction of revised GST norms, prices of some Mercedes-Benz models had previously decreased by around ₹2.60 lakh to ₹10 lakh. However, since the beginning of this year, vehicle prices have started rising again and could soon return to levels seen before the GST revisions.
Mercedes-Benz Vice President of Sales and Marketing commented on the development, stating, "This decision is largely driven by continued forex volatility, particularly the sustained depreciation of the rupee against the euro, along with rising input costs. While we always strive to absorb cost pressures, some price adjustment becomes necessary to maintain business sustainability."
Currently, Mercedes-Benz leads the premium car market in India, followed by BMW and Jaguar Land Rover. Among luxury vehicles sold in the country, SUVs account for the majority of sales, followed by sedans and high-performance sports cars. The German brand is also expanding its electric vehicle portfolio in India, offering models such as the EQS, EQA, EQB, and EQE, amid the growing demand for premium electric mobility.
Apart from Tier-1 cities, consumers in Tier-2 cities are gradually adopting luxury vehicles. To capture this growing demand, Mercedes-Benz is expanding its dealership and service network across these cities to improve reach and strengthen its market share. A significant number of Mercedes-Benz vehicles sold in India are locally manufactured, helping the company keep prices competitive.
Recently, the European Union signed a Free Trade Agreement (FTA) with the Indian government, which could potentially reduce import duties on vehicles to around 10%. While such policy measures are expected to make luxury vehicles more accessible in the long term, the latest price hike could partially offset these benefits for customers in the near future.
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