Mercedes-Benz is set to make a significant investment of $24 million in India this year, accompanied by the launch of more than twelve new cars. The focus will be on high-end models, catering to the growing demand from young, affluent Indians. Santosh Iyer, Managing Director of Mercedes-Benz India, revealed that over half of the new launches in the Indian market will be top-end vehicles, defined as those priced over $180,000.
Iyer noted the evolving customer profile in India, highlighting changing demographics and a rising aspiration among young achievers to enter the luxury segment. While traditionally Mercedes buyers in India have been business owners, there has been a 20% increase in salaried professionals as purchasers since pre-COVID times, constituting 12% to 14% of buyers, with an average customer age of 38.
In 2023, Mercedes achieved a record sales figure of 17,408 cars in India, reflecting a 10% increase over the previous year, driven by strong demand for high-end cars and SUVs. Iyer emphasized the potential in "mini metro" cities as future growth engines, with plans to establish new service workshops in locations like Udaipur, Amritsar, and Agra.
The automaker launched its GLS 450 SUV in India, priced from around $160,000. Among the planned launches for the year, Mercedes will introduce three new electric models, aiming to tap into the growing electric vehicle market in India. Currently, electric vehicles constitute 4% of Mercedes' sales in the country.
The $24 million investment will be directed towards Mercedes' manufacturing operations in Pune, western India.