In a remarkable trend reflecting the evolving preferences of Indian luxury car buyers, Mercedes-Benz India has reported that one in three cars sold by the brand in 2024 cost over Rs 1 crore. The surge in demand for top-end vehicles priced above Rs 1.5 crore underscores a significant shift towards opulence and advanced features among discerning consumers, marking a departure from previous trends focused solely on price considerations.

As the mainstream car market grapples with challenges such as single-digit growth and record-high inventory levels, Mercedes-Benz India has bucked the trend, registering over 15% growth from January to March 2024. This robust performance is accompanied by the lowest inventory levels witnessed in recent years, signalling a strong appetite for luxury vehicles amidst changing market dynamics.

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Santosh Iyer, MD and CEO of Mercedes-Benz India, highlighted the changing landscape of luxury car consumption in the country, noting that the average price of a Mercedes-Benz has risen to Rs 88 lakh. He attributed this shift to multiple factors, including the desire of consumers to stand out rather than merely impress, improved road infrastructure facilitating inter-city travel, and a younger demographic more inclined to luxury spending.

Bolstered by attractive financing options such as the Agility scheme offered by Mercedes-Benz Finance, the brand has successfully attracted new first-time buyers, further solidifying its position in the luxury car segment. With a market share ranging between 45-46% among luxury car sales from January to March 2024, Mercedes-Benz India continues to lead the pack among its German rivals, commanding a substantial 55% market share.

A notable trend observed is the increasing popularity of SUVs, which accounted for 60% of Mercedes-Benz's total sales over the last three years. Additionally, Battery Electric Vehicles (BEVs) constituted 7% of the brand's sales, nearly triple the size of the overall market. While diesel-powered SUVs remained dominant at 60%, petrol variants accounted for 70% of sedan sales in 2024.

Looking ahead, Mercedes-Benz India remains committed to catering to diverse customer demands by offering a wide range of powertrains, including electric vehicles. With plans to introduce 12 new models in 2024, including a new battery electric vehicle and two high-end vehicles, the brand aims to sustain momentum and further bolster its presence in the luxury car segment.

Despite challenges in the entry-level luxury segment, Mercedes-Benz India remains optimistic about the overall demand outlook, particularly in its core and top-end vehicle segments, which constitute 85% of total sales. With expectations of ending the year with strong double-digit growth, the brand continues to reaffirm its position as a leader in India's luxury automotive market.

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