MercedesBenz India has ruled out participating in the government’s electric policy, which offers lower customs duties for completely built units (CBUs).
Santosh Iyer, MD & CEO of MercedesBenz India, told Fe on Tuesday that the scheme is better suited for new entrants, not established players like MercedesBenz, which already has a local assembly plant. “We were the first to locally produce EVs in India. We make two EVs in Pune. For us, investing more just to claim duty exemptions doesn’t make sense,” he said, while welcoming the policy as a way to foster greater competition and technology sharing.
MercedesBenz, which has been present in India for the last 30 years, has so far invested Rs 2,800 crore and plans to take this to around Rs 3,000 crore. The company produces a range of vehicles locally, including electric models, at its Pune facility.
The Performance of TopEnd Luxury
Iyer was speaking to Fe on the sidelines of the launch of MercedesAMG CLE 53 4MATIC+ Coupe, priced at Rs 1.35 crore (exshowroom). The launch adds to the brand’s topend luxury performance portfolio. Imported as a CBU from Germany, the car will face a customs duty of up to 110%.
Iyer said there is “a lot of anticipation” for the CLE 53, with numerous inquiries already in, and the company expects high tripledigit sales. However, supply will be restricted in the short term due to limited global allocations. “The limitation is not due to production constraints but rather because there is a fixed global volume, and each market receives a certain share,” he said.
CBUs currently account for around 10% of MercedesBenz’s total sales in India. The brand sold about 19,550 units in FY25, with CBU offerings including the G 400d, GLS Maybach, and a wide AMG lineup such as the AMG A 45 S, AMG GLC 43, AMG GLE 53, AMG C 63 EPerformance, AMG S 63 EPerformance, AMG SL 55, AMG GT 63, and AMG G 63.
The company segments its portfolio into three categories: entry luxury priced up to Rs 60 lakh, core luxury between Rs 60 lakh and Rs 1.5 crore, and topend luxury above Rs 1.5 crore. The entrylevel segment contributes just 10% of sales, while the topend segment makes up more than 25%.
Outlook for the Indian Luxury Car Market 📈
MercedesBenz expects the luxury car market to cross the 50,000unit milestone for the second consecutive year in 2025, but with subdued growth. “If you look at the full year, I am still feeling that it will be a flatish or a singledigit growth,” Iyer said, citing macroeconomic and geopolitical uncertainties.
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