Mercedes Lines up Premium car launches
The German luxury carmaker is set to make significant strides in the Indian automotive market with a whopping $24 million investment and the launch of over a dozen new cars this year. Santosh Iyer, managing director of Mercedes Benz India, announced this move on Monday, emphasizing a focus on pricier models that have garnered substantial demand, particularly from young and affluent Indians.
A notable aspect of the strategy is the introduction of more than half of the new vehicles as top-end models, defined as those priced over $180,000. Iyer highlighted the evolving customer profile in India, stating that there is a growing aspiration among young achievers to delve straight into the top-end luxury segment. The shift in demographics is evident as more salaried professionals, comprising 12% to 14% of buyers, are now joining the traditionally business-owner-dominated customer base. The average age of a Benz customer in India is now 38.
Mercedes achieved record sales in 2023
The investment comes on the heels of Benz achieving record sales in India in 2023, with 17,408 cars sold, marking a 10% increase from the previous year. This success is attributed to the strong demand for the brand’s top-end cars and SUVs. Iyer acknowledged the changing landscape by identifying “mini metro” cities as future growth engines. Mercedes plans to expand its footprint by opening new service workshops in cities like Udaipur, Amritsar, and Agra.
Mercedes launches GLS 450
The launch of the GLS 450 SUV in India signals commitment to the market, with the gasoline version priced at approximately $160,000. Additionally, Mercedes is gearing up for the electric revolution in India, set to introduce three new electric models this year. Despite electric vehicles currently constituting 4% of Mercedes’ India sales, the company is positioning itself for the anticipated surge in demand for eco-friendly options.
The $24 million investment will bolster manufacturing operations in Pune, western India, and fuel the launch of innovative products. As the Indian automotive landscape transforms, Mercedes Benz is poised to maintain its stronghold, catering to the diverse preferences of the evolving consumer base and contributing to the growth of luxury car culture in the country.
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