Mercedes-Benz sees its ultra-luxury cars driving growth amid market volatility

The luxury car market in India has been growing at a gradual pace. At a time when the mass-market segment of the Indian passenger vehicle market has been witnessing sluggish growth owing to various factors such as increased pricing, higher cost of maintenance, rising inflation, economic uncertainty due to geopolitical tensions, tariff blow, etc., the luxury car market has been witnessing continuous growth. What Mercedes-Benz India has revealed is even more interesting.

The German luxury car marque has claimed that the company is recording its top-end ultra-luxury car portfolio, continuing to drive growth for the brand in a volatile market condition. The automaker has revealed this while launching its latest product, Mercedes-AMG CLE 53 4MATIC+ Coupe in India at ₹1.35 crore (ex-showroom).

In an interaction with PTI, Mercedes-Benz India MD and CEO Santosh Iyer said that with this growth momentum for the luxury cars in India, the segment is pegged to grow at around four to five per cent on a year-on-year basis. However, he also revealed that despite this growth projection, the demand is flattish as compared to last year for the industry. "Considering all the geopolitical developments happening around us, the growth may not be there as much as what we have seen in the previous years, but it is still there," Iyer stated.

Top-end models driving growth for Mercedes-Benz

For Mercedes-Benz, the top-end cars and core segments continue to grow while the entry-level vertical has de-grown, Iyer noted. He said that with eight launches in 2025, the OEM's top-end luxury vehicle strategy has been very successful, garnering immense customer response and elevating the desirability of Mercedes-Benz in the market. "So yes, we are not seeing that double-digit kind of growth momentum that we saw in the previous year, but still, flattish to single-digit growth is there," he added.

The Mercedes-Benz India official also noted that while there are some headwinds, the industry is also witnessing some tailwinds, which augur well for the growth in the coming quarters. Iyer cited GDP growth projections and record GST collections this year as some of the positive factors. "Obviously, macros are strong, and they should not affect the fundamental position. But yeah, it's a volatile market, for sure," he added.

Mercedes-Benz eyes festive season to boost sales

The festive season is considered one of the most prosperous times of the year when the auto industry in India across all segments witnesses significant growth. This year, after recording muted sales in the first half of the year, the auto industry is expecting to see a turnaround in the sales performance during the upcoming festive season, which is about to start in a few weeks. Mercedes-Benz is no different. The luxury car company is expecting a better sales momentum with the onset of the festive season.

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