Mercedes-Benz India is in the driver’s seat of the luxury car market, clocking its highest-ever fiscal sales at 18,928 units in FY 24-25 — and no, it’s not because everyone suddenly inherited royalty.
Despite a minor bump in Q1 2025 with sales of 4,775 units (blame it on the “Entry Luxury” segment catching a breather), the German marque has proven that when it comes to high-end indulgence, Indians have a serious case of “Benz envy.”
Let’s break it down like an AMG engine tune-up.
S-Class Swagger and Maybach Mania
Apparently, Indian customers don’t just want to arrive — they want to glide in with ambient lighting, a V8 growl, and maybe a mini-fridge. More than 1 in 4 Mercedes-Benz vehicles sold last year were from the Top-End Luxury segment — including the stately S-Class, blinged-out Mercedes-Maybachs, and the beastly AMG G 63. The demand is so intense, there’s now a 12-month waiting period for some of these models. It’s basically the car-world equivalent of getting on a VIP list at a super-exclusive club — only you get 20-way massaging seats too.
BEV Boom: Buzzing, Electric, and Very Premium
The Battery Electric Vehicle (BEV) segment wasn’t just a footnote. With a 51% growth in FY 24-25 and 8% penetration in Q1 2025, Mercedes-Benz is showing that green can also be glamorous. The EQS SUV led the charge (pun intended), becoming the most popular electric model — apparently, silence is golden when paired with a panoramic roof and laser headlights.
Core Strength: E-Class is the Boss
Mercedes’ “Core” segment — including the ever-popular E-Class LWB — remains the backbone of the brand’s volume play. The E 450 variant seems to be making everyone feel like they’re starring in a luxury tech thriller… just with more legroom.
Entry Luxury? More like Exit Strategy
The Entry Luxury segment saw a dip of 28% in Q1 2025. Apparently, customers are skipping the starter pack and going straight for the chef’s special. Mercedes-Benz isn’t worried though — it’s selling fewer compact cars, but the ones flying off the showroom floor are dripping in chrome and prestige.
New Cities, Same Glam: Expansion on Overdrive
Mercedes-Benz is shifting gears into Kanpur, Varanasi, Jammu, and just rolled into Agra last week — all part of its 21-outlet MAR20X expansion plan in 2025. With a Rs. 450 crore investment by Franchise Partners, expect dealerships that feel less like car showrooms and more like five-star lounges that happen to have cars.
If you’re in Hyderabad or Bengaluru, the new world-class service centers and 3S facilities mean your three-pointed star is going to be pampered like a celebrity on a spa day.
CEO Corner: Still Humble, Still Shiny
Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, says the brand’s success is due to “luxury of choice, differentiating service, and a delightful retail experience.” That, and perhaps the fact that one out of two German luxury cars sold in India is a Mercedes. Not bad for a company whose cars often cost more than a studio apartment in Bandra.
Final Lap: Luxury is no longer a niche — it’s a statement, a lifestyle, and in Mercedes-Benz India’s case, a carefully engineered blend of legacy, tech, and a touch of Maybach moonlight. FY 24-25 proved that even in an ever-evolving market, when it comes to aspiration, Indians are going full throttle — preferably in a G 580 with EQ Technology.
