Luxury carmaker Mercedes-Benz India has officially announced a staggered price hike across its vehicle lineup starting June 2025. This move comes amidst rising input costs, global economic shifts, and the depreciation of the Indian Rupee. With this announcement, the brand joins the list of major automakers revising prices in the second half of the year.
If you’re planning to buy a new Mercedes-Benz in India, here’s everything you need to know about the price hike, its reasons, and how it might affect your purchasing decision.
📢 Official Announcement by Mercedes-Benz India
Mercedes-Benz India released a formal statement confirming that prices across several models will see an increment of up to 2%, effective June 1, 2025. The hike will be implemented in a staggered manner, meaning it will vary by model, fuel type, and variant.
📌 Key Highlights:
- Effective Date: From June 1, 2025
- Hike Range: Up to 2%
- Applies To: C-Class, GLC, E-Class, GLE, GLS, S-Class, and more
- Not Uniform: Price hike will vary depending on model specifications
🔍 Why Is Mercedes-Benz Increasing Prices?
There are several compelling reasons cited by the company behind the price hike. These are largely rooted in economic and operational challenges, both domestic and international.
1. Rising Input Costs
The cost of raw materials such as steel, aluminum, copper, and rare earth elements used in luxury car manufacturing has surged. This is especially true for components used in ADAS (Advanced Driver Assistance Systems), infotainment systems, and hybrid-electric powertrains.
2. Currency Exchange Volatility
The depreciation of the Indian Rupee (INR) against the Euro and US Dollar has made importing critical components and fully built units (CBUs) costlier. This directly affects high-end models like the S-Class, AMG variants, and EQ electric series.
3. Compliance with New Regulations
Stricter emission norms and safety regulations have forced automakers to invest more in technology upgrades. Meeting BS6 Phase 2 norms and updating features in EVs also contributed to the cost escalation.
4. Logistics and Shipping Costs
Global disruptions in supply chain and shipping routes, especially through the Red Sea crisis and other geopolitical tensions, have increased transportation expenses.
🚗 Models Likely to Be Affected
While the company has not released a model-wise breakdown yet, insiders suggest that the hike could impact the following models the most:
| Model | Current Price (Approx.) | Expected Price After Hike |
|---|---|---|
| Mercedes-Benz C-Class | ₹60 lakh | ₹61.2 lakh (approx.) |
| GLC SUV | ₹75 lakh | ₹76.5 lakh (approx.) |
| E-Class LWB | ₹88 lakh | ₹89.7 lakh (approx.) |
| GLE | ₹1.08 crore | ₹1.1 crore (approx.) |
| S-Class | ₹1.75 crore | ₹1.78 crore (approx.) |
| EQB (EV) | ₹77.5 lakh | ₹79 lakh (approx.) |
Note: Prices are indicative and may vary by state and dealer.
📈 Is This a Good Time to Buy a Mercedes-Benz?
If you’re seriously considering purchasing a luxury car in 2025, May is your best window to buy a Mercedes-Benz before the prices go up. Dealerships across India are already launching limited-time pre-hike offers, including:
- Attractive exchange bonuses
- 0 down payment or low EMI schemes
- Extended warranty and complimentary service packages
📌 Expert Tip:
If you’re eyeing models like the C-Class, GLC, or the EQB, you might want to book and register before June 1 to save on the upcoming price hike.
🧮 What Does a 2% Hike Mean Financially?
Let’s break down the impact of a 2% price hike on different price segments:
- For a ₹60 lakh vehicle → Hike = ₹1.2 lakh
- For a ₹1 crore vehicle → Hike = ₹2 lakh
- For a ₹1.75 crore vehicle → Hike = ₹3.5 lakh
Over a typical 5-year EMI period, this could mean an increase of ₹3,500–₹6,000 per month, depending on the loan terms. For high-end vehicles, it may also affect on-road prices significantly due to corresponding increases in GST, insurance, and registration costs.
🧭 How Does This Compare with Other Luxury Brands?
Mercedes-Benz isn’t alone in this move. In 2025, other luxury brands like BMW, Audi, Lexus, and Volvo are also expected to adjust their pricing strategies.
- BMW India increased prices by up to 2% in Q1 2025.
- Audi India is planning a mid-year adjustment for Q3.
- Volvo Cars India raised prices on its hybrid and EV models by up to 1.5%.
So, Mercedes-Benz’s hike aligns with industry trends, and is not unexpected given the global inflationary pressures.
🔮 Future Outlook: Will Prices Keep Rising?
Experts predict that more hikes could follow later in the year if:
- Global oil prices increase further.
- The Indian Rupee weakens beyond 85 per USD.
- Component shortages continue due to geopolitical tensions.
However, the luxury car segment in India has shown resilience, and customer demand is unlikely to take a major hit. Mercedes-Benz is also planning to localize more production to offset future import costs.
🛠️ How Mercedes-Benz Plans to Justify the Price Hike
To soften the impact of the price increase, Mercedes-Benz India is also planning to:
- Launch facelifted and updated models with new tech features.
- Enhance after-sales service, warranty, and customer experience.
- Introduce special editions and personalization packages for top-selling models.
Moreover, the brand will continue to invest in electrification, ADAS, and connected car technologies, which add significant value over time.
✅ Conclusion: Act Now If You’re Planning to Buy
Mercedes-Benz India’s upcoming price hike from June 2025 is part of a broader industry trend, but it still presents a timely opportunity for buyers to act before costs go up.
If you’ve been eyeing your dream Benz, this is the right time to:
- Book early, preferably before the end of May 2025.
- Take advantage of dealership offers and financing schemes.
- Get clarity on post-June pricing for models you’re considering.
For existing Mercedes owners, this also means your car’s resale value may slightly appreciate, especially for premium variants.
