Mercedes Prioritises Value Over Volume, Expects 3% Sales Dip in 2025
The company reported a remarkable 34% increase in sales of its AMG portfolio, driven by popular models like the AMG G63 and AMG CLE53, indicating a robust market for high-performance luxury cars.
Pune: Mercedes-Benz, the German luxury carmaker, which retained market leadership, has decided to focus on value over volume for profitable growth and concentrate on top-end luxury vehicles priced 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 at Mercedes-Benz India told Financial Chronicle.
He said the focus would be on top-end luxury vehicles with a ticket price of Rs 1.5 crore and above, where sales are growing and bringing better margins.
With intense competition in the entry-level luxury car market in India, even from non-luxury brands in the sub Rs 50 lakh segment, Mercedes in CY2025 de-grew 20 per cent, but the top-end luxury car segment soared by 11 per cent earning more revenues.
In CY2025, the Pune-based automaker’s sales volume dropped 3 per cent to 19,007 units as compared with 19,565 units sold in CY2024.
The company’s “best ever year in revenues for CY2025” was backed by 11 per cent growth in the Top End Vehicle (TEV) segment and 12 per cent growth in Battery Electric Vehicles (BEVs).
The AMG portfolio also jumped 34 per cent, powered by demand for AMG G63, AMG CLE53 and AMG GLC43 cars.
Mercedes BEVs now comprise 20 per cent of all top-end Mercedes-Benz sold in India. Over 70 per cent of all Mercedes-BEVs sold in 2025 were priced between Rs 1.25 crore to Rs 3.10 crore, establishing a strong customer preference for top-end BEVs in the luxury segment, the company said.
“We have delivered another best-ever year in terms of revenue growth, buoyed by high affinity amongst discerning customers, reflected in the strong growth in the TEV segment as well in top-end BEVs,” Iyer noted.
He said 2026 would be an action-packed year with 12 new product offensives, expansion of our local production portfolio, the launch of the MB.Charge Public, expansion into new markets and investment in upgrading our entire network.
Mercedes kick-started 2026 with the launch of the Mercedes-Maybach GLS ‘Celebration Edition’ priced at Rs 4.10 crore and the made-in-India Maybach GLS at Rs 2.75 crore, making it cheaper by Rs 42 lakh compared with the imported model’s price tag of Rs 3.17 crore.
It has also launched the EQS SUV ‘Celebration Edition’ starting at Rs. 1.34 crore (5-seater) and Rs 1.48 crore (7-seater).
