Mercedes-Benz Reports Significant Growth in Electric Vehicle Sales in Indian Market

Mercedes-Benz India Sees Strong Adoption of Electric Vehicles in Luxury Segment

Mercedes-Benz India's electric vehicle (EV) penetration has reached 8-9% across its portfolio, significantly higher than the mass market. The company's top-end segment has seen a remarkable 25% adoption rate, with one in four cars sold being electric.

Key Models Driving Adoption

Mercedes-Benz offers several electric models in India, including the EQS luxury sedan (starting at Rs 1.62 crore), EQS SUV (Rs 1.41 crore onwards), EQE SUV (around Rs 1.39 crore), and the EQB electric SUV (around Rs 74 lakh). The EQS sedan, which is locally assembled in India, has emerged as one of the company's leading EV offerings.

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Rising Prices Weigh on Purchase Conversions

Despite strong consumer interest, rising vehicle prices are beginning to impact purchase decisions in the luxury segment. Showroom walk-ins and enquiries have risen 10-20% year on year, but higher vehicle prices mean many enquiries do not convert into sales. Mercedes-Benz plans to implement quarterly price hikes, with the next expected in April.

Luxury Segment Exposed to Exchange-Rate Volatility

The luxury segment remains more exposed to exchange-rate volatility due to high import content. Forex rates have gone down by 20-25%, making luxury vehicles more expensive. This may prompt buyers to delay purchases, as luxury is not a necessity.

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Sustained Interest and Measured Growth Ahead

Despite price pressures, Mercedes-Benz expects sustained interest from luxury buyers in India. The company plans to launch 11 new models in India this year, including the CLA and the V-Class luxury van, as it looks to tap rising demand from younger and affluent buyers. Long-term growth in the luxury car market will depend on broader economic expansion, according to Santosh Iyer, CEO and MD of Mercedes-Benz India.