The focus will be on the premium luxury segment, with four new electric models lined up for launch within a year.
Based on 41% year-on-year growth in 2022, thanks to a product strike strategy, Mercedes-Benz India will continue on the same path for the next financial year. Matthias Luhrs, Mercedes-Benz Overseas Regional Manager, said: “We think that by bringing more products and the right products into the market, we will expand and grow further. The focus this time around will, understandably, be on electrification and of course SUVs.
Four new EQ models to launch in fiscal year 2024
Speaking specifically about the placement of these new products, Luhrs said: “We are very interested in our strategy to electrify our portfolio and bring in more electric cars. We got a good reception for the first electric cars – EQC, balance and EQS – and I can tell you that we will bring four more EQ cars to India in the next 8-12 months.”
Therefore, Mercedes-Benz will doubled its electric vehicle portfolio in India next year with SUV body style as the leading contender. Traditionally, sedans have been the backbone of Mercedes sales in India – electronic class remains the brand’s best-selling model in 2022 – but like the global trend, SUVs are the undisputed choice. “We can see a worldwide trend towards SUVs and I think India too. We can even see that our range now has a higher percentage of SUVs,” said Luhrs. “We will bring in the EQE and EQS SUVs, not exactly when, but obviously, these are perfect products for the Indian market.”
The adoption rate of electric vehicles in India has so far met the brand’s expectations, and they believe electric cars could account for up to 25% of Mercedes sales in India in the next four years. This is exactly where more products will be key to growth, along with the development of infrastructure.
The automaker is currently importing EQB, EQC and EQS 53 AMG, while EQS 580 is assembled domestically in India.
Luhrs says electric SUVs like the EQE and EQS are “well suited for the Indian market”
More focus on the top tier of the luxury segment
Crucially, even within its own range, Mercedes is clearly focusing on the most premium segment of the luxury car market in India. While this end of the market isn’t particularly driven by volume, it is often more profitable for the automaker and ultimately a more sustainable business case.
“We determined, together with our management, that we would go up in luxury. We’re specifically looking at the top-end market, where we saw 61% growth last year and India and their clients are the perfect base for this premium growth, ‘ said Luhrs.
“For us, it is more important than luxury for our customers to feel special. I think this specialty could come from less volume, and say, a more profitable niche.”
In fact, Mercedes has dominated the luxury segment of the Indian market with models like WORLD RANGE and SUV GLS, but Luhrs’ comments also hint at more Maybach and AMG models. On that note, the company will soon be Launched AMG GT 63 SE Performance in India.
Globally, there have also been reports of Mercedes overtaking A class and B-Class models after their current generation in an effort to move into the higher-end market. However, the company has not completely abandoned the luxury or compact luxury segment. This segment is of course key for markets like India, where it is a stepping stone into the luxury segment, although our tax structure is not particularly supportive of this segment.
“We just re-emphasized our compact segment,” says Luhrs. They may look a little different – we can’t reveal what it will be like – but we will continue with compact cars in India.”
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