New Delhi: Luxury carmakers Mercedes-Benz and Audi have announced price increases across their vehicle portfolios in India, citing rising input costs and foreign exchange volatility as key reasons behind the move.

Mercedes-Benz said it will raise prices by around 2 per cent across its vehicle portfolio in the Indian market starting April 1, 2026. The company said the decision comes in response to continued foreign exchange volatility and increasing operational expenses.

According to Brendon Sissing, Vice President, Sales and Marketing at Mercedes-Benz India, the sustained depreciation of the Indian rupee against the euro has significantly raised the company’s costs. “Starting April 1, we will be implementing a price correction of around 2 per cent across our portfolio. This decision is largely driven by continued forex volatility, particularly the sustained depreciation of the rupee against the euro, along with rising input costs,” Sissing said.

Sissing said the company typically tries to absorb cost pressures but periodic adjustments become necessary to maintain long-term sustainability. He added that Mercedes-Benz India would implement the increase carefully to ensure minimal impact on customers.

“While we always strive to absorb cost pressures, some price adjustment becomes necessary to maintain business sustainability. Our focus remains on ensuring minimal impact on customers while continuing to deliver best-in-class products and experiences,” he said.

Audi Follows Similar Move

Meanwhile, Audi India has also announced a price increase of up to 2 per cent across its entire model range in the country from April 1, 2026. The German luxury carmaker said the price hike will apply across all models sold in India.

According to Balbir Singh Dhillon, Brand Director of Audi India, the company has attempted to keep the impact on customers as limited as possible despite rising costs. “Due to recent rising input costs and currency fluctuations, we are implementing a price adjustment of up to 2 per cent effective from April 01, 2026. We remain committed to minimising the impact of the price hike on our customers,” Dhillon said.

The price revision will be applicable on the ex-showroom prices of all Audi vehicles in India. Audi currently offers a wide range of luxury sedans and SUVs in the country and periodically reviews its pricing strategy to offset fluctuations in costs and exchange rates.

Industry Cost Pressures

The announcements from both companies underline the pressures faced by luxury automobile manufacturers as currency fluctuations and rising input costs affect operations. Automakers have increasingly had to recalibrate pricing strategies to balance business sustainability while maintaining competitiveness in India’s expanding premium vehicle market.