Mercedes-Benz and BMW cars are set to become more expensive starting January 1, 2026. These companies are going to increase the prices of their vehicles by 2 to 3 percent. Let's take a closer look.

If you're planning to buy a luxury car in early 2026, this news is useful. Mercedes-Benz and BMW, two major companies in India's luxury car market, have announced price increases. Both companies are set to increase the prices of their models by 2 to 3 percent, effective January 1, 2026. Significantly, this increase is the first since the GST reduction in September 2025. Let's explore the reasons behind this.

Why are car prices being increased?

• According to the companies, this price increase is due to the weakening of the Indian rupee. The rupee has remained consistently weak against the euro, increasing import costs. Mercedes-Benz says it has attempted to limit price increases to around 2 percent. Meanwhile, market intelligence suggests BMW may increase prices by around 3 percent.

impact of rupee depreciation

• The exchange rate between the euro and the rupee remained above 100 rupees for a long time during 2025. Previously, Mercedes-Benz had also raised prices by 1 to 1.5 percent in September 2025. According to the company, the weak currency has increased pressure on the supply chain. The cost of cars that are completely imported into India or require parts imported from abroad has increased significantly.

Mercedes-Benz posts strong sales during the festive season.

• Despite the price increase, Mercedes-Benz had a strong festive season in 2025. The company sold around 2,500 cars during the nine days of Navratri. The average price of these cars was around ₹1 crore. However, after October, sales were slightly weaker in November. In October and November combined, the company sold 3,396 units, which was almost the same as last year.

BMW sales increase

• October and November 2025 were a good period for BMW, with sales increasing by 6 percent to 2,849 units, according to data from the Federation of Automotive Dealers Associations.

Cars may become more expensive in the future

• The rupee's weakness has been seen not only against the euro, but also against the dollar and the Chinese yuan. This could increase the cost of electric vehicle batteries and specialized parts like magnets, which are mostly supplied from China. This could further impact car prices in the future. If you're considering a Mercedes-Benz or BMW car, it may be beneficial to purchase one before January 1, 2026. The prices of these luxury cars are bound to increase from the new year.