Mercedes-Benz India Reports Record Sales in 2024, Plans 8 New Products

Luxury carmaker Mercedes-Benz India plans to roll out 8 new models, including battery electric vehicles, this year as it looks to sustain sales momentum having posted record sales in 2024.

The company sold 19,565 units last year, registering a growth of 12 per cent as compared to 17,408 units in 2023.

Mercedes also saw sales of battery electric vehicles almost doubled in 2024 as compared to 2023.

The company said one out of the four vehicles it sold last year was a top end vehicle (TEV) with a price tag exceeding Rs 1.5 crore.

In an interaction with PTI, Mercedes-Benz India Managing Director & CEO Santosh Iyer said the new launches would be a mix of new models as well as fresh versions of the existing line up.

The company introduced 14 new models last year in India.

Iyer noted that the company remains optimistic as sales growth to continue in 2025 as well despite witnessing some headwinds in the second half of last year.

In the second half of last year, the market growth actually dropped to 2-3 per cent and Mercedes sales grew by 16 per cent with robust offtake of top end vehicles (TEVs), he added.

"We start the new year with a strong 2,000 odd car order bank. I think that gives us a lot of confidence to move into 2025," he added.

Iyer noted that the exchange rate remains favourable at the moment but if it changes, there might be some impact on the price impacting the demand.

"That's something that we need to be careful about. The second thing is the geopolitical nature of all the events across the world. We have limited control, so we don't want to see how that develops. But if you look at our product lineup, our inquiry leads, the outlook is extremely positive for us at this stage," he added.

Fundamentally, the automaker sees sales growth to continue, Iyer stated.

"Roads are being built. Consumer aspirations are high. We can see a lot of young customers. The dream to own the three-pointer star is at an all-time high in India," he added.

On electric vehicle sales, Iyer said new model introductions have helped the company to report a 94 per cent increase in sales in 2024 as compared to 2023.

"Share of electric cars in overall sales has gone up from around 2.5 per cent to over 6 per cent. So that clearly shows that we are on the growth path. New products are helping us to grow," he stated.

With mass segment carmakers also set to launch electric models, it is going to help the overall segment grow, Iyer said.

The Pune-based carmaker plans to enhance its sales network in the country with 20 new luxury outlets planned in 2025.

The company currently has presence across 125 locations in 50 cities.

Iyer said the company's franchise partners have committed over Rs 450 crore investment in three years for the same.

The investment would go not only into new outlets, but transforming the current outlets to the new luxury formats, he added .

"We are moving closer to customers. We are coming up in new markets like Jammu, Patna, Kanpur, Agra, so we are going into new markets as well as revamping our entire network as well for a better luxury experience," Iyer said.

Elaborating on company's growth in India over the years, he noted that in the first 20 years of its existence, the automaker managed to sell 50,000 odd cars in India.

"In the last 10 years, we have sold 1.5 lakh units...this is the India story," Iyer stated.

Mercedes-Benz on Thursday launched two battery electric vehicles -- the G580 with EQ technology Edition One and locally produced EQS SUV 450 (five-seat configuration).

The G580 price starts from Rs 3 crore while the EQS SUV 450 is tagged at Rs 1.28 crore (ex- showroom), the company said.

Mercedes-Benz India continues to lead with its BEV roadmap, strengthening commitment to sustainability, Iyer noted.