Mercedes-Benz India heads into 2026 with a sharper focus on value, localisation and top-end growth after ending 2025 with sales of 19,007 units. The company’s strategy includes 12 launches and local assembly of the GLS Maybach. Santosh Iyer, managing director and CEO, Mercedes Benz India tells Akbar Merchant and Geeta Nair.
Q: How would you sum up 2025 for Mercedes-Benz India?
A: 2025 was our best-ever year in terms of revenue, with sales of 19,007 units. Growth was led by the top-end segment, which grew 11%, while EV volumes rose 12%. Our AMG range expanded 34%, underlining strong demand for high-performance and ultra-luxury vehicles. For EVs, especially in the in the top-end segment where we are strongly present, penetration is close to 20%. India has also become one of the top five global markets for Maybach, reflecting strong customer acceptance.
Q: What does your sales mix look like currently?
A: The Indian luxury car market is about 52,000 units annually. For us, 25% of sales come from top-end models, 62% from the core segment, and just 13% from entry-level. We have consciously reduced entry-segment volumes by 23%. This is a strategic choice and a key differentiator versus competitors, where entry-level cars can account for up to 40% of volumes.
Q: Currency volatility has been a challenge. How are you managing pricing?
A: The Euro appreciated nearly 19% against the Rupee last year. We took calibrated price increases, including a 2% hike from January 1. Given current trends, further price increases are unavoidable.
Q: With geopolitical and macro uncertainties, how confident are you about 2026 growth?
A: Uncertainties are constant. We’ve navigated COVID, semiconductor shortages and supply chain disruptions. What gives us confidence is that India remains a structurally growing market, supported by GDP growth, tax reforms and policy measures. Growth in 2026 will be driven by product launches and localisation, while exchange-rate pressures are expected to remain.
Q: BMW is closing the sales gap. How do you plan to defend leadership?
A: We don’t chase rivals or volumes. We will not enter a price war. Our focus remains on product substance, top-end growth, AMG performance and long-term brand value. That strategy is already reflected in our revenue growth and rising contribution from high-end vehicles, and we remain confident of sustaining leadership on that basis.
Q: What are your strategic priorities for 2026?
A: In 2026, we will launch 12 new models. A key milestone is the local assembly of the GLS Maybach, making India the first market outside the US to assemble this model locally. Localisation reduces the price from Rs 3.37 crore to Rs 2.75 crore, improving accessibility while preserving margins. We will also continue to offer the CBU GLS Maybach, positioned at a higher level of customisation. We have also launched Maybach GLS Celebration edition priced at Rs 4.1 crore.
Q: How does this translate into margins and residual values?
A: Our focus is on value over volume. Heavy discounting destroys residual values, which ultimately hurts customers and brand equity. Even our entry point, such as the GLA at close to Rs 50 lakh, is fully loaded with no compromise. This approach helped us deliver our highest-ever revenue in 2025.
Q: How is the EV segment growing in India?
A: We are focused on top-end EVs, led by the EQS SUV, which accounts for nearly 20% of our EV portfolio. We have introduced two EQS Celebration Editions, in five- and seven-seat layouts. Charging remains the biggest barrier. We are introducing MB.Charge, a global service available in 37 countries. In India, this brings together around 9,000 fast AC and DC chargers under one platform, covering discovery, authentication and payment which can be done after the vehicle is charged. Our upcoming CLA EV, expected in the first quarter, will also support in-car charging payments. As far as India goes, we have crossed 3,000 unit sales of Mercedes-Benz EVs here.
Q Why is Mercedes-Benz localising the GLS Maybach in India, and what does it signal for the market?
A Local assembly of the GLS Maybach is a significant milestone for us. India is now among the top five global markets for Maybach, alongside China, the US, South Korea and Germany. That scale gives us the confidence to invest in localisation even at the very top end of the portfolio. India will be the first market outside the US to assemble this model, underlining the maturity of the luxury car market here and the depth of demand for ultra-luxury products.
Q How does localisation change pricing and positioning for the GLS Maybach?
A Local assembly allows us to reduce the price meaningfully. The GLS Maybach will now be priced at Rs 2.75 crore, compared with around Rs 3.17 crore earlier. This improves accessibility for customers without diluting the brand or our margins. At the same time, we will continue to offer the fully imported version for customers who want a higher level of customisation, as well as limited editions such as the Maybach GLS Celebration Edition, which sits at a higher price point.
Q Do current tariff issues between the US and India have any impact on plans to produce locally?
A We are a multinational company operating across regions, and we constantly adapt to changes in the trade environment. Production of the GLS Maybach in the US will continue for global markets. Local assembly in India is meant to meet domestic demand and does not replace US production. While geopolitical and tariff-related uncertainties exist, they have not altered our decision to assemble the vehicle locally for India.
Q How would you sum up Mercedes-Benz India’s performance in 2025?
A 2025 was our best year so far in terms of revenue. We sold 19,007 units, with growth led by the top-end segment, which grew 11%. Our AMG performance portfolio expanded 34%, and electric vehicle volumes rose 12%. EV penetration in the top-end segment is now close to 20%. Importantly, India’s position as a top-five Maybach market reflects strong customer acceptance of ultra-luxury offerings.
Q What does your current sales mix look like?
A The Indian luxury car market is about 52,000 units annually. For us, around 25% of volumes come from top-end vehicles, 62% from the core segment and only 13% from entry-level models. We have consciously reduced entry-level volumes by about 23% as part of a value-led strategy, unlike some competitors where entry models form a much larger share.
Q Currency volatility has been a concern. How are you managing pricing pressures?
A The euro appreciated sharply against the rupee last year, and we responded with calibrated price increases, including a 2% hike from January. Given current trends, some further price increases are unavoidable, but localisation initiatives such as the GLS Maybach help offset part of that pressure.
Q How do you view growth prospects for 2026?
A Uncertainty is a constant, but India remains a structurally growing market. In 2026, we plan to introduce 12 new products, with growth driven by launches and localisation. Exchange-rate pressures may persist, but our focus on top-end growth and value should support sustainable performance.