Chennai: Mercedes-Benz India said more than half of its sales in the country now come from cars priced above Rs 1 crore, while nearly one in three vehicles sold costs more than Rs 1.4 crore, as the German luxury carmaker is doubling down on a strategy centred on profitability and premiumisation.“Over the past three years, the share of our top-end vehicles in total sales has steadily increased—from around 20% to 23-24%, and now to 28%,” Santosh Iyer, MD & CEO of Mercedes-Benz India, said.“By top-end, we mean vehicles priced above Rs 1.4 crore. We use that threshold because the average selling price has also increased. If we were to consider cars priced above Rs 1 crore, the share would be significantly higher, as even models such as the GLE now cost over Rs 1 crore. On that basis, well over 50-60% of our sales come from cars priced above Rs 1 crore,” he told TOI.Iyer expects demand for flagship models to remain strong and believes the share of top-end vehicles will remain close to one-third of overall sales as supply constraints ease. The richer product mix is translating into stronger revenue growth, with a top-end vehicle generating roughly three times the revenue of an entry-level model.“We are not on the same treadmill as everyone else. What matters to us is the structure of our business, the product mix, revenues and profitability,” he said.Electric vehicles, Iyer said, are another key pillar of Mercedes’ long-term strategy, although the company has adopted a different approach by focusing first on premium EVs rather than lower-priced models. EVs now account for 25% of the company’s top-end portfolio.The strategy, however, is set to broaden significantly. Mercedes plans to expand its EV lineup over the next 18-24 months as part of a global product offensive that includes around 40 new models. Several of these, including the new GLC, are expected to be introduced in India.“We’ve followed a top-down strategy, while others started from the entry segment. Over the next two years, customers will see a much broader EV portfolio from Mercedes-Benz,” Iyer said.In the June quarter, the company’s sales grew 10% to 4,637 units from 4,238 units a year earlier.Even as the battle for leadership in India’s luxury car market intensifies, Mercedes reported a 9% increase in first-half 2026 sales to 9,768 units, from 9,013 units in the year-ago period, with top-end models growing 20% and entry-level vehicles rising 29%, helped by the newly launched CLA. Several models, including the CLA and V-Class, continue to have waiting periods.Mercedes expects demand to remain healthy through the second half of the year, supported by the festive season and a strong order book of more than 2,000 vehicles entering the third quarter. However, it remains cautiously optimistic, projecting single-digit growth for the full calendar year, citing further price increases, currency fluctuations and macroeconomic uncertainties.The company has already raised prices twice this year and had planned another increase before easing exchange rates provided temporary relief. With the euro strengthening again and input costs remaining elevated, the company has not ruled out further price hikes.
