Mercedes Benz India Price Hike: Mercedes-Benz India has made history as the first automaker to declare a price increase for 2025, implementing a 3% rise across its entire range, effective January 1, 2025. The company cited escalating input costs, inflation and increased operational expenses as the reasons for this decision, mirroring trends from the previous year. As is customary at the beginning of the year, other car manufacturers are likely to follow in the coming months and raise prices across their vehicle offerings.
Purpose Behind the Price Hike
Santosh Iyer, the Managing Director and CEO of Mercedes-Benz India, noted that the company has encountered rising cost pressures over the past three quarters, driven by increasing material costs, fluctuating commodity prices, and higher logistics expenses. While the company has made efforts to tackle these issues by improving operational efficiencies, it has opted to introduce a slight price adjustment to ensure the sustainability of its business.
Modification in Price
Mercedes-Benz announced that the price adjustments will apply to both in-stock and out-of-stock models. Its diverse lineup in India includes the S-Class sedan, E-Class LWB, GLS, GLC, GLE SUVs, all-electric EQS and EQE, along with coupes, cabriolets, and the A-Class hatchback. Price hikes will range from Rs 2 lakh for the GLC to Rs 9 lakh for the luxurious Mercedes-Maybach S 680.
In October 2024, Mercedes-Benz revealed that it concluded the third quarter of CY24 with total sales reaching 5,117 units, representing a 21% rise from the 4,240 units sold in Q3 2023. Additionally, the company reported a record 14,379 units sold during the first nine months of 2024, indicating a 13% increase compared to the same timeframe in 2023, when sales totaled 12,768 units.
The revised prices will only affect vehicles that are currently out of stock. However, all existing and new bookings made before December 31, 2024, will enjoy price protection. Additionally, Mercedes-Benz India emphasized its flexible financing options to help ease the effects of the price increase on customers.
