Mercedes To Expand Entry-Level EV Luxury Car Market With New CLA Electric

“Our electric car sales have picked up and the market is responding well to our electric product range,” Santosh Iyer, MD and CEO of Mercedes Benz India told Financial Chronicle.

He said Mercedes electric cars grew 12 per cent in calendar year 2025 and they accounted for 20 per cent of the total Mercedes cars sold in CY 2025. “About 70 per cent of the electric vehicles sold in 2025 were top-end cars priced between Rs 1.25 crore to Rs 3.10 crore,” Iyer said.

The Pune-based automaker now wants to introduce its most affordable EV, the CLA Electric at around Rs 58 lakh to expand its presence in the entry-level luxury segment targeting young successful entrepreneurs.

“The younger Gen Z business men and women are looking for smart and tech-featured electric cars for their daily as well weekend getaways,” Iyer noted, adding that the booking for the imported all-new Mercedes CLA Electric sedan would start on March 10 and deliveries in April.

Although the Mercedes CLA Electric sedan is an entry-level luxury car, it is a technology driven car, earning the title the European car of the year 2026, he said.

It offers a WLTP-certified range of 792 km per full charge, which the company believes would mitigate range anxiety among car enthusiasts, making it ideal for long distance drives with family and friends.

“With this new CLA Electric model, we plan to grow the entry-level luxury car market as this model offers high-end tech features at a more accessible price point,” Iyer stressed.

He said enquiries for Mercedes models were all time high although conversion to buying was a bit slow due to geopolitical uncertainties.