Mercedes-Benz India has introduced the facelifted S-Class with a plug-in hybrid powertrain, Priced from Rs 2.20 crore (ex-showroom), the S 450e will be sold as a completely built unit (CBU), with bookings now open and deliveries slated to begin around Diwali.

The launch underlines Mercedes-Benz India’s belief that the luxury car market is not ready for a single-technology future. “India is still a market in transition. While EV penetration in the segments we operate in exceeds 20%, a large majority of customers continue to buy combustion-engine vehicles,” said Santosh Iyer, Managing Director and CEO, Mercedes-Benz India.

According to Iyer, concerns around residual values, charging infrastructure and range anxiety continue to influence buying decisions. “We are offering customers a choice of EVs, combustion engines and plug-in hybrids, allowing them to decide the pace of transition while we remain powertrain-agnostic,” he said.

Designed to offer electric mobility

He further added that the S-Class plug-in hybrid is designed to offer electric mobility without compromising long-distance usability. “The S-Class should offer customers the benefits of electric driving while addressing concerns typically associated with EV ownership. The plug-in hybrid combines electric mobility with the flexibility of a combustion engine,” Iyer added.

The S 450e combines a 3.0-litre turbo-petrol engine with a rear-mounted electric motor and a 22kWh lithium-ion battery, producing a combined 435hp and 680Nm. Mercedes-Benz claims an electric-only range of up to 115km and fuel efficiency of 32.2kmpl under the WLTP cycle.

The company confirmed that a locally assembled S-Class will continue in India, although the powertrain mix will be decided based on customer demand. Industry sources indicated that petrol and diesel variants are likely to be assembled locally in the coming months.

The S-Class continues to enjoy strong customer loyalty. “Around 80% of customers who initially buy a newly launched generation are existing S-Class owners upgrading to the latest model,” said Iyer. The average age of an S-Class buyer in India has fallen to around 40 years, while the proportion of customers upgrading from an S-Class sedan to a Maybach sedan has risen from 4-5 % a few years ago to as high as 30 % today.

Mercedes-Benz reported 7 % growth in the first quarter of 2026. Despite geopolitical uncertainties and currency pressures, the company expects 2026 to remain a growth year, albeit with single-digit expansion. It currently has between 1,500 and 2,000 pending orders across its portfolio.

On alternative fuels, Iyer said all Mercedes-Benz vehicles sold in India are E20 compliant and some models were materially compliant even before E20 fuel became available. However, the company currently has no plans to introduce E85-compatible models.