Mercedes-Benz India to expand top-end, EV push with 12 new launches this year

Mercedes-Benz India is doubling down on its top-end luxury and electric vehicle strategy while maintaining a disciplined “value over volume” approach, as the company reshapes its portfolio mix amid a shifting demand landscape in the premium automotive market, a senior company official said.

Speaking during a media roundtable following the FY2025–26 sales announcement, Santosh Iyer, Managing Director and CEO, Mercedes-Benz India, said the company’s performance continues to be led by higher-value segments even as entry-level demand shows relative softness.

“We are seeing very remarkable growth driven by the top-end segment. Top-end vehicles are up 16%, and in the latest quarter, we have seen 25% growth in top-end cars,” Iyer said, adding that the share of top-end vehicles has risen to 27%.

He noted that while the core segment continues to mirror broader industry growth, the entry portfolio has seen a decline, which he attributed to strategy rather than structural weakness.

“It is not just about total volume growth for us. It is about the mix. In revenue terms, this is one of our best-ever fiscal periods,” he added.

Top-end momentum and EV transition drive portfolio shift

Mercedes-Benz India’s electric vehicle penetration within its top-end portfolio currently stands at 20%, driven by models such as the EQS SUV and EQS Maybach variants. The company is now preparing to enter the next phase of its EV strategy with the upcoming CLA electric.

The new model, scheduled for launch on April 24, marks Mercedes-Benz’s entry into a new-generation EV platform in India. However, Iyer made it clear that the brand will not pursue aggressive price competition in the entry EV space.

“We will not be a price warrior. The CLA will be positioned around the ₹60 lakh range, while the market is below the ₹50 lakh level. Our focus will remain on product substance,” he said.

The company has also outlined a broader rollout pipeline of 12 product launches this year across segments, including multiple EVs. However, Iyer categorically stated that Mercedes-Benz will not introduce entry-level battery electric vehicles purely to chase volume in lower price bands.

“There is space for everyone in the market. Different OEMs may grow in different segments, but the overall market continues to expand,” he noted.

“Value over volume” remains core operating philosophy

Responding to concerns around rising competition and discount-led strategies in the luxury car market, Iyer reiterated that Mercedes-Benz will continue to prioritise brand strength and residual value over aggressive volume chasing.

“We will not do deep discounting. We will not de-content products to chase volumes. Our focus is very clear—value over volume and protecting residual value,” he said.

He added that the company’s direct-to-consumer retail model has played a key role in ensuring pricing transparency and consistency across customers. “What one customer gets, every customer gets. That has helped us protect brand desirability and deliver the best residual values in the market,” he said.

On pricing, Iyer indicated that the company has already undertaken multiple price increases and expects further calibrated adjustments ahead, driven largely by currency movements.

“We have already taken price hikes, and there will be another adjustment in the coming quarters. But we will move step by step to avoid demand shocks,” he said.

Market outlook: cautious optimism amid macro volatility

On the broader luxury car market outlook, Iyer maintained a cautiously optimistic stance despite geopolitical uncertainties and macroeconomic pressures.

“We continue to maintain a single-digit growth outlook for both the industry and ourselves. India remains structurally strong with a 6–7% GDP growth trajectory and strong consumption drivers,” he said.

He added that while short-term sentiment may fluctuate, the long-term demand outlook remains intact, supported by rising aspiration levels and sustained brand desirability in the luxury segment.