Mercedes-Benz to hike car prices again in September amid euro surge; launches luxury ‘Atelier’ store in Chennai

CHENNAI: German-luxury car brand Mercedes-Benz India has indicated a further price increase for its cars from September, citing adverse fluctuation of Euro against the Indian Rupee, a top official said here on Monday.

The company already revised its prices by 1.5 per cent, each in January and June this year, Mercedes-Benz India MD-CEO Santosh Iyer said.

“We had priced our cars (when One EURO) was at Rs 89-90. With the Euro going up, even though we localise more than 30 per cent of our cars, 70 per cent of the cars still have European content and when the EURO goes up (against Rupee), the price (of Mercedes-Benz range of cars) will go up,” he told reporters.

He noted that Mercedes-Benz has already effected a price increase of its cars twice in 2025, in January and June. Up to 1.5 per cent was the increase in hike.

“And the third one (increase in price) equal to 1.5 per cent will come in September, because we cannot pass this in one go and we are doing it phase wise,” he said.

Despite the proposal to increase the price of cars, Iyer sounded optimistic on retail sales with the Reserve Bank of India announcing interest rate cuts twice this year.

“We have a non-banking finance company, Mercedes-Benz Finance and this arm has also reduced the interest rates. About 80 per cent of our cars are financed and today, if you look at June, the price of cars (of Mercedes-Benz) has gone up. But the EMIs remain the same.” he said.

Besides Iyer, top officials of Mercedes-Benz India and Sundaram Motors ED Sharath Vijayaraghavan were here at the launch of a top-end luxury experience store in Adyar which has been inaugurated as part of the company’s networking strategy.

Iyer said Mercedes-Benz intends to open 30 such showrooms, which includes upgrading the existing facilities and also setting up new outlets this year in new locations.

“This is the 11th such facility. We will be opening 19 more in the next 5 months. These provide Atelier Experience to customers which offers upgraded infrastructure, technology and an exclusive personalisation corner to customers,” he said.

After the highly exclusive Maybach Lounge set up in Hyderabad, G-Lounge in Delhi, Mercedes-Benz introduces the bespoke ‘Atelier Experience’ in Mumbai and Chennai where discerning customers can configure their cars with a range of customisation options, he noted.