Buying these vehicles will become expensive from January 1, know why the prices are being increased?

If you are planning to buy a luxury car in the beginning of 2026, then this news is useful for you. Mercedes-Benz and BMW, two big companies in India’s luxury car market, have announced to increase the prices of their cars. Both the companies are going to increase the prices of their models by 2 to 3 percent from January 1, 2026. The special thing is that this increase is being made for the first time after the GST cut in September 2025. Let us know the reason behind this.

Why are car prices being increased?

• According to the companies, this increase in prices is being done due to the weakness of the Indian rupee. Rupee continues to remain weak against Euro, due to which expenditure on imports has increased. Mercedes-Benz says it has tried to limit the price increase to about 2 percent. At the same time, according to market related information, BMW can increase the prices of its cars by about 3 percent.

Effect of rupee weakness

• During the year 2025, the exchange rate between Euro and Rupee remained above Rs 100 for a long time. Earlier, Mercedes-Benz had also increased prices by 1 to 1.5 percent in September 2025. According to the company, pressure on the supply chain has increased due to weak currency. In India, the cost of cars which are completely imported or for which parts are imported from outside, has increased significantly.

Strong sales of Mercedes-Benz in the festive season

• Despite the price increase, the festive season of 2025 was very good for Mercedes-Benz. The company sold around 2,500 cars in 9 days of Navratri. The average price of these cars was around Rs 1 crore. However, sales remained slightly weak in November after October. Including October and November, the company sold 3,396 units, which was almost equal to last year.

Increase in BMW sales

• October and November 2025 were a better time for BMW. During this period, an increase of 6 percent was recorded in the company’s sales and a total of 2,849 units were sold. These figures have come from the data of Federation of Automotive Dealers Association.

Cars may become more expensive in future

• The weakness of the rupee has been seen not only against the euro but also against the dollar and the Chinese yuan. This may increase the cost of parts like electric vehicle batteries and special magnets, which are mostly supplied from China. This may have further impact on car prices in the future. If you are thinking of buying a Mercedes-Benz or BMW car, then it can be beneficial to buy before January 1, 2026. The prices of these luxury cars are sure to increase from the new year.