Renowned German luxury carmaker Mercedes-Benz has announced its intentions to launch twelve new models in India, with a focus on top-end cars priced over ₹1 crore. This expansion is part of the company’s broader strategy to capitalize on the robust demand for high-end vehicles in the country.
Mercedes-Benz is set to bolster its electric vehicle (EV) portfolio in India by introducing three new battery electric models. The luxury automaker witnessed a remarkable threefold increase in EV sales in 2023, with EVs contributing to 4% of its overall volumes. With an ambitious target, the company aims to achieve 25% of its sales from EVs in the next four years. The current battery electric vehicle lineup includes the EQB SUV, EQE SUV, and EQS sedan.
The company’s stellar performance in 2023 reflects a 10% YoY growth, reaching a record 17,408 units compared to 15,822 units in the previous year. Mercedes-Benz India commands an impressive 48% market share in the premium car segment, underscoring its strong position in the market.
Lance Bennett, Vice President of Sales & Marketing at Mercedes-Benz India, emphasized the company’s strategic focus on the top-end vehicle (TEV) segment, which contributed around 25% to the sales volume in the preceding year. He stated, “It is our strategy to grow the TEV segment as it represents about 25% of our sales.”
As part of its commitment to the Indian market, Mercedes-Benz will invest ₹200 crore in the country in the current year, bringing the cumulative investment since 1994 to ₹3,000 crore. The company aims to enhance its service network by inaugurating 20 workshops and expanding its presence into 10 new cities in 2024. Notable cities such as Jammu, Kannur, Kottayam, Udaipur, Amritsar, Agra, Valsad, and Patna are set to witness the addition of Mercedes-Benz workshops this year.
To strengthen its top-end SUV portfolio, Mercedes-Benz has also launched the new GLS. Featuring a 6-cylinder diesel engine and a 6-cylinder petrol engine, both equipped with 48V mild hybrid technology, the GLS models aim to provide a powerful and efficient driving experience.
Despite the increasing focus on electric vehicles, Mercedes-Benz India’s Managing Director and CEO, Santosh Iyer, stressed the importance of maintaining a balance between petrol and diesel vehicles until the complete transition to EVs. Iyer highlighted the significance of a mix to address environmental concerns, citing the advantages of diesel in terms of fuel efficiency, torque, and residual value.
Iyer also acknowledged the role of the Goods and Services Tax (GST), noting that the current 5% GST on EVs contributes significantly to their competitive pricing. He expressed optimism that if this favorable GST rate persists, there could be a rapid transition to electric vehicles in the Indian market.
