In a strategic move reflecting the shifting dynamics of the global luxury car market, Mercedes-Benz anticipates India’s ascent to becoming its third-largest market within the ‘Region Overseas,’ comprising 118 countries. This projection comes as the luxury carmaker aims to capitalize on the strong demand for high-end vehicles and the gradual adoption of electric vehicles in the Indian market.
The Region Overseas, excluding North America, Europe, and China, currently places India as the fifth largest market behind Japan, South Korea, Australia, and Turkey. However, with a sales gap of approximately 8,000 units per year between India and Turkey, Mercedes-Benz sees immense potential for growth in the subcontinent.
Sagree Sardien, Head of Region Overseas at Mercedes-Benz AG, expressed confidence in India’s significance for the brand’s future. “Our Region Overseas markets span 118 countries worldwide, and India is currently the fifth-largest. It serves as a crucial market today and will continue to be so for the future of the Mercedes-Benz brand,” Sardien stated.
The company envisions achieving this milestone within the next 2-3 years, propelled by the evolving Indian market dynamics. Mercedes-Benz considers India a strategic market, witnessing double-digit growth in sales of its high-end models over the past few years, a trend expected to persist in the coming years.
As part of its expansion strategy, Mercedes-Benz plans to introduce 12 new models in the Indian market this year, including three battery electric vehicles. The brand also aims to establish its presence in 10 new locations, ranging from Jammu to Kottayam, targeting smaller cities to enhance its reach and operations.
Mercedes-Benz India reported its highest-ever sales of 17,408 units in 2023, indicating a robust market response. Sardien acknowledged the gradual but steady growth of electrification in India, constituting 4% of total sales. She expressed optimism about witnessing double-digit growth in electrification within the Indian market for the brand’s product range.
While emphasizing the electric future for Mercedes-Benz, Sardien assured that the company would adapt its strategic direction to meet customers’ evolving preferences and market conditions. Despite the transformation towards electric vehicles, she highlighted the importance of catering to customer preferences at a pace aligned with market demands.
When addressing the potential of the overall luxury car market in India, Sardien projected it could reach the 1 lakh unit mark by the end of the decade. However, she acknowledged the necessity for fundamental shifts in the market and the importance of understanding how customers transition between combustion engine and battery electric vehicle architectures.
