Mercedes-Benz plans expansion in India with 12 new models, focus on EVs

Hyderabad: German automaker Mercedes-Benz anticipates India's ascent to become its third-largest market within its 'Region Overseas' in the next 2-3 years, citing a steady demand for luxury products, as stated by a senior company executive.

Within Mercedes-Benz's 'Region Overseas', encompassing 118 countries excluding North America, Europe, and China, India currently holds the fifth position, following Japan, South Korea, Australia, and Turkey.

The sales gap between India and Turkey stands at approximately 8,000 units per year. "Our Region Overseas markets encompass 118 markets worldwide, and India stands as market number five for us. This underscores the relevance and significance it holds, not only presently but also for the future of the Mercedes-Benz brand," shared Mercedes-Benz AG Head of Region Overseas, Sagree Sardien during a press briefing.

Sardien expressed confidence in India's market trajectory, stating, "We are convinced that with the way the Indian market is developing, we should see this happening in the next two to three years."

Highlighting India's strategic importance, Sardien mentioned the company's consistent double-digit growth in sales of high-end models over recent years, a trend expected to continue.

Mercedes-Benz plans to introduce 12 new models, including three battery electric vehicles, in the Indian market this year. Additionally, the company aims to broaden its reach to smaller cities, with plans to establish sales outlets in 10 new locations from Jammu to Kottayam, expanding its operations.

In 2023, Mercedes-Benz India achieved its highest-ever sales of 17,408 units. Sardien noted the gradual uptake of electrification in India, with 4% of total sales attributed to EVs. "We anticipate double-digit growth in electrification for our product range within this market," she stated.

Acknowledging the pace of customer preferences, Sardien emphasized the company's commitment to evolving alongside its customers. "While the future is electric for us, we remain attentive to our customers' changing preferences and market conditions," she added.

Regarding the potential of India's luxury car market, Sardien projected it could reach the 1 lakh unit mark by the end of the decade. However, she emphasized the need for fundamental shifts in the market, particularly in transitioning customers from combustion engines to battery electric vehicle architecture.

India's luxury car market, currently at around 47,000 units annually, remains a small segment within the broader passenger vehicle market, which surpassed 41 lakh units last year.