The price increase would be between 3 per cent and 5 per cent depending on the model, leading to a price hike between Rs 1 lakh and Rs 5 lakh.
In India, the German luxury carmaker sells models ranging from A Class to Maybach, priced between Rs 28 lakh and Rs 1.67 crore (ex-showroom price).
Elaborating on the need to go in for price hike, the company said: "The imposition of an infrastructural cess as well as an additional luxury tax announced in the Union Budget 2016, has negatively impacted the prices of the Mercedes-Benz model range."

Click here: Mercedes rolls out refreshed E-class sedan starting at Rs 48.60 lakh    

In addition, a weakening currency coupled with rising input costs has been exerting significant pressure to the bottom-line, it added.
The combination of all these factors led Mercedes-Benz India to upwardly revise the prices of the entire model range, the company said.
Hitting out at the Budget proposals, Mercedes-Benz India Managing Director & CEO, Roland Folger said: "Contrary to our expectation of some relief in terms of rationalisation of duties, the introduction of additional duties and taxes in this years Union Budget has adversely affected our pricing.