Mercedes-Benz Foresees India Rising to Third Largest Market Globally Within 2-3 Years

Mercedes-Benz anticipates India ascending to the position of its third-largest market in the ‘Region Overseas’ category, covering 118 countries, excluding North America, Europe, and China. Currently ranked fifth in the region, behind Japan, South Korea, Australia, and Turkey, the German automaker expects India to bridge the sales gap of around 8,000 units annually with Turkey within the next 2-3 years. Emphasizing India’s strategic importance, Sagree Sardien, Head of Region Overseas at Mercedes-Benz AG, highlighted the nation’s relevance for the future of the brand. With sales of high-end models growing in double digits for consecutive years, Mercedes-Benz plans to introduce 12 new models, including three battery electric vehicles, to capitalize on India’s burgeoning demand for luxury automobiles. The company also aims to expand its footprint to 10 new locations, tapping into smaller cities like Jammu and Kottayam.

Mercedes-Benz India achieved its highest-ever sales of 17,408 units in 2023, and Sardien expressed confidence in sustaining double-digit growth in electrification within the Indian market. While acknowledging a gradual shift in customer preferences toward electric vehicles, she emphasized Mercedes-Benz’s commitment to maintaining its strategic direction, prioritizing the future of electric mobility. Despite challenges, the luxury car market in India is expected to reach the 1 lakh unit mark by the end of the decade, contingent on factors such as customer transition from combustion engines to battery electric vehicles. The current luxury car market, standing at around 47,000 units per annum, constitutes a modest segment within India’s expansive passenger vehicle market, which surpassed 41 lakh units last year.