Mercedes-Benz India is considering a further price increase, which will be implemented in September 2025. The German luxury vehicle maker that recently introduced two sports cars in India, viz. the AMG GT 63 4MATIC and GT 63 PRO 4MATIC Coupe, ₹3 crore (ex-showroom) and ₹3.65 crore (ex-showroom), respectively, have announced that the OEM is set to implement another price increase for its India passenger vehicle range.
Talking to PTI, Mercedes-Benz India Managing Director and CEO Santosh Iyer stated that negative movements of the Euro versus the Rupee are influencing the OEM’s price increase strategy. This will be the third price increase in 2025. In January and June this year, Mercedes-Benz had hiked prices of its vehicles by 1.5 per cent each.
The company has asserted that it had experienced a 13 per cent rise in cost over the last twelve months as the Rupee kept depreciating against the Euro, hiking the price of imported components. The Indian subsidiary of the German luxury carmaker imports approximately 70 per cent of its components.
(Also read: ₹3 crore. Bookings open”>Mercedes-AMG GT 63 and GT 63 PRO launched at ₹3 crore. Bookings open)
“If you see, one Euro was equivalent to ₹99 and it is the first time that the Euro has crossed the ₹98 mark. We had quoted our cars when one Euro was ₹89-90. Since Euro is increasing, even though we localise over 30 per cent of our cars, 70 per cent of the cars have European content and when the EURO increases against Rupee, the price of the Mercedes-Benz range of cars will increase,” Iyer said, adding, “The third one (increase in price) to the tune of 1.5 per cent will be effective from September, because we can’t give this in one stroke and we are doing it phase wise,” he said.
Mercedes-Benz is hopeful of upbeat retail sales
Even with the planned increase in price of its vehicles, the luxury vehicle maker sounded positive on sales at the retail level with the Reserve Bank of India (RBI) cutting interest rates twice in the same year. “We have a non-banking finance company called Mercedes-Benz Finance and this subsidiary too has cut down the interest rates.
Approximately 80 per cent of our vehicles are financed, and if you observe June today, the cost of Mercedes-Benz vehicles has increased. But the EMIs haven’t changed,” he said. Iyer supplemented that the rate cuts in interest announced by the Reserve Bank are aiding the sales of the Mercedes-Benz line of vehicles.
He also mentioned that 2025 is not a straightforward year from a geo-political macro economy climate, and hence the company would rather be a large conservative when it comes to demand and projections. “Currently, we had a great May in sales terms, and June also appears to be robust and hopefully, during the festive season, we will bring cheer back even more in sales terms for his company,” said Iyer
