Mercedes-Benz India's Quarterly Price Strategy Against Rupee Decline

Mercedes-Benz India plans to increase its product prices quarterly in 2026 due to rupee depreciation against the euro. Already scheduled for a 2% hike from January, further quarterly increases aim to mitigate the currency impact, addressing a 15-18% devaluation over 18 months.

Mercedes-Benz India is contemplating quarterly price increases for its products throughout 2026, aiming to counterbalance the rupee's devaluation against the euro. This proposal emerges as the euro-rupee exchange rates surpass historical levels, indicating significant currency challenges.

The automaker has already announced a planned 2% price rise effective January 1, 2026. According to Managing Director and CEO Santosh Iyer, the persistent forex fluctuations necessitate ongoing adjustments to absorb the financial strain imposed by a steep rupee depreciation, which has seen a 15-18% drop over the past 18 months.

While the exact quarterly increments remain undecided, a similar 2% increase per quarter is possible. These necessary adjustments reflect Mercedes-Benz India's strategy to avoid sudden demand impacts while managing an economic environment shaped by a substantial currency decline.