Mercedes-Benz India Faces Pricing Turbulence Amid Currency Fluctuations

Mercedes-Benz India may raise prices in April due to a weakening rupee against the euro. The luxury car market is experiencing muted demand amid geopolitical tensions. Despite potential setbacks, the company expects long-term growth and remains optimistic about market expansion, even welcoming new players like Tesla.

Mercedes-Benz India is contemplating a price increase for its models this April, as the rupee weakens against the euro. Managing Director & CEO, Santosh Iyer, explained that the continuous depreciation of the rupee may lead to a price adjustment if the trend persists.

In a statement on Tuesday, Iyer highlighted that the exchange rate has been concerning, noting a significant shift from 90 to 95 rupees against the euro. Despite initial growth expectations, geopolitical circumstances have dampened customer sentiment in the luxury car market.

Additionally, the entry of new players like Tesla is seen positively, potentially spurring market growth. However, the recent 6% tax on high-end electric vehicles in Maharashtra could negatively impact EV demand. Mercedes-Benz India sold a record 19,565 cars in 2024, up from 17,408 units the previous year.

(With inputs from agencies.)