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Mercedes-Benz India ended the fiscal year 2024–25 with its best-ever sales performance. The luxury carmaker delivered 18,123 units, marking a 4% growth compared to the previous financial year. Top-end vehicles and electric mobility drove this growth as the company focused on luxury innovation and customer experience.
The brand strengthened its position as India’s top luxury car manufacturer. Despite economic headwinds and rising competition, Mercedes-Benz India maintained a steady sales trajectory, largely because of its aggressive push in the Top-End Vehicle (TEV) and electric vehicle segments.
Top-End Vehicles Dominate Sales
Top-End Vehicles, which include the GLS, S-Class, AMG lineup, and the EQS, contributed significantly to the total sales. Mercedes-Benz saw a 34% year-on-year increase in this segment. The demand surged in metro cities like Mumbai, Delhi, and Bengaluru, where high net-worth individuals prefer performance and personalization in their luxury vehicles.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, noted that TEVs accounted for almost one in four cars sold. The brand’s strategy to emphasize flagship models paid off. Models like the S-Class, GLS Maybach, and the AMG G63 remained on long waiting lists throughout the year. These vehicles, priced upwards of ₹1.5 crore, not only boosted volume but also contributed heavily to revenue and profit margins.
Electric Vehicles Witness Strong Momentum
Mercedes-Benz doubled down on its electric vehicle offerings in FY25. The brand recorded a 51% surge in EV sales compared to the previous year. EVs such as the EQB, EQE SUV, and EQS 580 found increasing acceptance among urban buyers.
Mercedes-Benz expanded its EV charging network across the country, enhancing convenience and addressing range anxiety. The company now operates over 150 fast-charging stations in India, ensuring a smoother experience for EV owners.
The EV push aligns with the global transition towards cleaner mobility. Mercedes-Benz plans to go all-electric in key markets by 2030, and India remains a critical part of that vision. The growing demand for electric mobility, driven by rising environmental consciousness and favorable state incentives, contributed to the EV segment’s success.
New Launches and Customization Options Attract Buyers
Mercedes-Benz India launched several models in FY25, including the new GLC, EQE SUV, and facelifted versions of the AMG lineup. These launches brought new energy into the luxury segment and helped the brand maintain customer interest.
The brand also enhanced its customization options under the ‘Manufaktur’ program. This service allowed customers to personalize their vehicles with unique colors, interior materials, and features. More than 60% of TEV buyers opted for customized specifications, reflecting an increasing demand for exclusivity.
In addition to cars, Mercedes-Benz also introduced digital innovations such as the “Retail of the Future” (ROTF) model. The ROTF program ensured transparent pricing and a uniform buying experience across all touchpoints—online and offline.
Dealer Network Expansion and Customer Support
Mercedes-Benz India expanded its dealer footprint in tier-2 and tier-3 cities. New outlets in cities like Indore, Bhubaneswar, and Kochi brought the brand closer to emerging affluent buyers. The company now operates 140+ touchpoints across India.
The brand also prioritized after-sales service. It launched extended warranty programs, on-demand services, and mobile service vans to reach remote customers. Service packages like Star Ease and Service on Wheels gained popularity among buyers looking for hassle-free ownership.
Customer experience remained at the core of Mercedes-Benz’s growth strategy. Initiatives like ‘Mercedes me Connect’ and AI-powered diagnostics improved the ownership journey. Customers also appreciated 24×7 concierge services and round-the-clock roadside assistance.
Financing Options Boost Demand
Mercedes-Benz Financial Services (MBFS) played a pivotal role in supporting the brand’s growth. It offered flexible lease and finance plans with competitive interest rates and long tenures. Around 70% of total sales came through finance schemes offered by MBFS.
Buy Now, Pay Later (BNPL) and balloon payment schemes attracted first-time luxury buyers. The brand tailored financial plans based on customer profiles, offering higher affordability without compromising on exclusivity.
Mercedes-Benz Bets on RBI’s Rate Cut
Santosh Iyer highlighted that a potential rate cut by the Reserve Bank of India (RBI) could further stimulate demand in the upcoming quarters. A lower interest rate would reduce EMIs, making luxury cars more accessible to a wider audience. The brand expects its upward sales trend to continue if economic conditions stay favorable.
Mercedes-Benz closely monitors macroeconomic indicators such as inflation, fuel prices, and borrowing costs. A stable outlook gives the company confidence to invest more in network expansion, localization, and technology.
Luxury Car Market Outlook for FY26
The Indian luxury car market is expected to maintain its upward momentum in FY26. The growing number of affluent households, increased disposable income, and rising interest in premium mobility will continue driving demand.
Mercedes-Benz aims to launch six new models in FY26, including two high-performance AMG variants and three electric vehicles. The company will also expand its EQ (electric) portfolio, solidifying its leadership in the premium EV segment.
The brand has already begun work on its first India-specific EV, which will debut in 2026. This model will cater to local market preferences and offer a sub-₹1 crore price point, thus opening the luxury EV market to a broader base.
Sustainability and Local Manufacturing
Mercedes-Benz continues to focus on sustainability and local value addition. The company assembles 13 models at its Chakan plant in Pune, which operates on 100% renewable energy. Local sourcing helps in managing costs and reducing carbon footprint.
Mercedes-Benz also partnered with Indian vendors for EV components and battery modules. This initiative supports the “Make in India” mission and enables the brand to improve delivery timelines and serviceability.
Conclusion
Mercedes-Benz India ended FY25 on a strong note with a 4% rise in total sales, a 34% jump in top-end vehicle sales, and a remarkable 51% growth in EV sales. Its consistent performance across product segments, aggressive localization strategy, expanded service network, and innovative financial products solidified its market leadership. With the launch of new models and growing EV acceptance, the brand remains poised for continued success in FY26.
