Mercedes Benz India records highest-ever sales in 2023, up by 10% at 17,408 units

Santosh Iyer, MD and CEO and Lance Bennett, VP, Sales and Marketing launching the new GLS 4MATIC Facelift

Mercedes-Benz said that its India sales witnessed the highest-ever growth of 10 percent at 17,408 units in 2023. Buoyed by the response, the German luxury carmaker plans to drive in 12 more cars this year to keep up the momentum.

The German Luxury carmaker, which leads the luxury car market, had sold 15,822 units in the previous year, which was also its all-time high figure until then. Apart from this, the company also recorded its best-ever H2 and best-ever Q4 sales in India. The luxury carmaker claimed that it maintained its lead in the Indian luxury car market for the ninth consecutive year.

“There is an evolving customer profile (as) the demographics are changing. Today, around 12-14 percent of our customers come from a salaried background. This is an increase of 20 percent compared to pre-covid times. Women today comprise 15 percent of our total sales, which is up 50 percent compared to pre-covid times,” stated Santosh Iyer, MD & CEO of Mercedes Benz India

He also indicated that the company foresees an emergence of mini-metros as it sees them as its “future growth engines”.

Aiyar also revealed that its portfolio witnessed a sharp increase in SUV body styles. “Sedans today stand at around 45 percent and SUVs around 55 percent, in terms of body styles, in our portfolio. This is also the result of the strong products such as the new GLC (SUV), which was launched in the middle of last year, drove more SUV adoption.”

Divulging more details about its performance, the company said that nearly 25 percent of its sales came from Top End Vehicles (TEVs), which cost over Rs 1 crore and include S-Class Maybach limousine, GLS Maybach SUV, performance-oriented AMGs, S-Class and GLS models.

“The average age of the buyers of top-end vehicles such as S-Class is just 38 years as a lot of aspiration for a lot of young achievers to straight away to get into this segment of the luxury (car market). The important catalyst for all this has also been (our finance arm) Mercedes Benz Financial services, which has seen a 50 percent increase in the ticket seize at Rs 60 lakh average credit for every Mercedes Benz car purchased, ” noted Iyer.

Mercedes Benz also affirmed that Increased focus on the electric car segment is reflected in the growing customer preference for the Mercedes-Benz BEV portfolio, which grew by 3X with a 4 percent contribution in CY 2023 sales. The BEV portfolio comprises the EQB SUV, EQE SUV, and EQS sedan and another 3 models will be added to its lineup this year.

“We see a gradual adoption of EVs among our customers. At the same time, we have to be realistic. (The)  adoption of electric cars is a marathon and not a sprint. We have to be committed for a long-term sustainable future,” added Iyer.

Mercedes-Benz India also launched the facelifted version of its GLS SUV at Rs 1.32-1.37 crore (ex-showroom, India). The vehicle will be available in petrol and diesel options and will take on BMW X7 and Audi Q8.

Meanwhile, Mercedes Benz will be investing Rs 200 crore on new products, beefing up production and digitising its manufacturing processes. On the outlook for 2024, Iyer maintained that the company is looking for "double-digit" growth despite volatility in both supply and demand sides.