Mercedes Prioritises Value Over Volume, Expects 3% Sales Dip in 2025
Pune: German luxury carmaker Mercedes-Benz, which remains the market leader, has decided to focus on value rather than volume for profitable growth and focus on high-end luxury vehicles priced at Rs 1.5 crore and above, where margins are better.
“Our strategy this year will be on value over volume for profitable growth,” Santosh Iyer, MD and CEO, Mercedes-Benz India, told Financial Chronicle.
He said the focus will be on high-end luxury vehicles with a ticket price of Rs 1.5 million and above, where sales are increasing and fetching better margins.
In the entry-level luxury car market in India, due to intense competition from even non-luxury brands in the sub-Rs 50 lakh segment, Mercedes is expected to grow by 20 per cent in 2025, but the high-end luxury car segment is expected to grow by 11 per cent, generating more revenue.
The Pune-based automaker’s sales volume declined by 3 percent to 19,007 units in 2025 compared to 19,565 units sold in 2024.
The company’s “best year ever for revenue for 2025” was supported by 11 percent growth in the Top End Vehicle (TEV) segment and 12 percent growth in Battery Electric Vehicles (BEVs).
The AMG portfolio also increased by 34 percent, driven by demand for the AMG G63, AMG CLE53 and AMG GLC43 cars.
Mercedes BEVs now account for 20 percent of all top-end Mercedes-Benzes sold in India. More than 70 percent of all Mercedes-BEVs sold in 2025 are priced between Rs 1.25 billion and Rs 3.10 billion, creating a strong customer preference for high-end BEVs in the luxury segment, the company said.
“We have delivered another best-ever year in terms of revenue growth, supported by high interest among discerning customers, reflected by strong growth in the TEV segment and premium BEVs,” Iyer said.
He said that 2026 will be an action-packed year with 12 new product launches, expansion of our local production portfolio, launch of MB.Charge Public, expansion into new markets and investments to improve our entire network.
Mercedes kicks off 2026 with the launch of the Mercedes-Maybach GLS ‘Celebration Edition’ worth Rs 4.10 lakh and the India-made Maybach GLS worth Rs 2.75 lakh, making it cheaper by Rs 42 lakh compared to the imported model’s price tag of Rs 3.17 lakh.
It has also launched the EQS SUV ‘Celebration Edition’ starting at Rs. 1.34 crore (5-seater) and Rs 1.48 crore (7-seater).
