Mercedes-Benz expects India to be its third-largest global market by 2027


Mercedes-Benz expects India to be its third-largest global market by 2027

  • Mercedes-Benz is aiming to launch 12 new cars in India, including three battery electric vehicles in an attempt to boost its sales in the country.
Mercedes-Benz is aiming to launch 12 new cars in India, including three battery electric vehicles in an attempt to boost its sales in the country.

The luxury car market in India has been growing at a rapid pace over the last few years. A large number of young car buyers are showing interest in purchasing luxury cars instead of mass-market models. Buoyed by this shift in consumer preference, Mercedes-Benz expects India to be its third-largest market in the world among 118 countries over the next two to three years, PTI has reported.

Currently, India is the fifth-largest market for the German luxury car marque after Japan, South Korea, Australia and Turkey in its ‘Region Overseas’ strategy, which includes 118 countries, excluding markets such as North America, Europe and China. The car manufacturer has reportedly stated that the sales gap between the fourth and fifth largest global markets for the OEM, respectively Turkey and India is around 8,000 units per year, which is expected to narrow fast over the coming months, resulting in India going up in the chart.

Mercedes-Benz AG’s Head of Region Overseas, Sagree Sardien has reportedly said that the demand for luxury cars in India is anticipated to remain strong in the coming years, which will propel faster growth for the OEM. “Our Region Overseas markets which encompass 118 markets across the world and India happens to be market number five for us. So you can imagine the relevance and importance it serves not only today, but also for the future of the Mercedes Benz brand,” Sardien reportedly said. Speaking about a tentative timeframe, she reportedly said that Mercedes-Benz is convinced that with the way the Indian market is developing, the automaker should see this happening in the next two to three years.

Watch: Mercedes Benz GLC 2023: First drive review

Mercedes-Benz to launch 12 new cars in India in 2024

Terming India as a strategic market for the auto company, Sardien reportedly noted that Mercedes-Benz has seen sales of its high-end models registering double-digit growth over the last couple of years and expects the same to continue this year and beyond. Mercedes-Benz India reported its highest-ever sales of 17,408 units in 2023 and hopes to continue this momentum in 2024 as well.

Keeping pace with this rising demand, Mercedes-Benz will launch 12 new models in its India lineup this year, which will include three battery electric vehicles, Sardien noted. The company is also aiming to expand its sales network beyond the top-tier cities across India. It plans to tap smaller cities as it looks to establish sales outlets in 10 new locations ranging from Jammu to Kottayam to scale operations, Sardien reportedly stated.

When asked about the potential of the overall luxury car market in India, she said it can touch the one lakh unit annual mark probably by the end of this decade. “But I think there are some fundamental things that need to happen in the market and it is highly dependent on how customers transition here between the combustion engine and the battery electric vehicle architecture,” she reportedly added.

Currently, the luxury car market in India is around 47,000 units per annum and remains a minuscule part of the overall passenger vehicle segment which crossed the 41 lakh units mark in 2023.

Mercedes-Benz India betting big on EVs

Mercedes-Benz India has already launched electric cars like EQE and EQS in the country. Currently, the automaker is leading the luxury electric car market in India. For future development in the segment, the OEM is keeping a close watch and aims to bring more products in this category. The automaker said the electrification journey in India is picking up slowly for Mercedes-Benz with four per cent of its total sales in the country coming from electric vehicles.

Sardien hopes that Mercedes-Benz India will register double-digit growth in the electric vehicle segment in the near future. “I completely believe that we will see a double-digit growth in electrification for our product range within this market,” she said while also adding that, “Customers’ preferences are obviously at a much slower pace than the demand we expected. It is clear that the future is electric for us, but we ensure that we cater for our customers’ changing preferences and where market conditions are actually allowing.”

First Published Date: 06 Mar 2024, 09:43 AM IST

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