Mercedes may increase prices due to weakening rupee

Mercedes-Benz India may raise car prices in April if the Indian rupee keeps dropping against the euro. The company's Managing Director and CEO, Santosh Iyer, shared this information on Tuesday. This possible price increase follows a hike that occurred in January of this year. The euro is currently worth more rupees than before, hitting a low of 95.13 against the rupee recently. Iyer noted that when the exchange rate changes significantly, it may lead to higher car prices. The company is closely monitoring the currency situation, as the exchange rate has been concerning lately. Iyer also mentioned that the luxury car market could face challenges for at least the next two quarters due to weak consumer demand. Geopolitical uncertainties are affecting customer confidence. While Mercedes expects improvements in the domestic market eventually, current market conditions are muted. The introduction of new players like Tesla could stimulate market growth, according to Iyer. He believes new companies can drive demand and innovation. However, he expressed concern about Maharashtra's new 6 percent tax on electric vehicles priced above 30 lakh rupees, stating it may negatively affect EV demand. In 2024, Mercedes-Benz sold a record 19,565 cars. This was an increase compared to the 17,408 units sold in 2023. The company remains optimistic about its long-term growth prospects.