India at the Core of Mercedes-Benz’s Global Strategy
Mercedes-Benz is doubling down on India with a sharp focus on long-wheelbase (LWB) luxury cars, continued diesel offerings, and a flexible multi-powertrain approach. The German luxury carmaker has held the No. 1 spot in India’s luxury segment and now wants to defend and expand that lead.
“The unmatched success of the E-Class LWB has shown the way,” said Mathias Geisen, Member of the Board of Management, at the 2025 IAA Munich Mobility Show. “We’re evaluating if other models could follow this format.”
Diesel Stays, EVs Grow on Demand
While diesel is losing ground globally, Mercedes-Benz sees it as essential for India’s SUVs.
- No plans to phase out diesel — compliant with EU7 standards.
- EV strategy is flexible — the company can adapt if 30%, 50%, or even 70% of models like the GLC go electric.
- Current EVs in India: EQC and EQB.
- More EVs may come depending on infrastructure, incentives, and customer demand.
This multi-pathway ensures Mercedes-Benz customers get choices across ICE, hybrid, and electric.
Competition and Localisation Push
India remains a growth anchor, but rivals are investing heavily in local production. Mercedes-Benz already runs its own facility in India, giving it an edge in customisation and localisation.
Key focus areas:
- Expanding AMG performance models for enthusiasts.
- Strengthening LWB chauffeur-driven models for luxury buyers.
- Leveraging local assembly to stay price-competitive.
Impact of the India–EU FTA
The proposed free trade agreement (FTA) between India and the EU could reshape import costs and local assembly dynamics. Mercedes-Benz is preparing for multiple scenarios but says free trade will benefit both the industry and customers.
The Key Takeaway
Mercedes-Benz’s India strategy stands on three strong pillars:
- LWB dominance — building on the E-Class template.
- Diesel continuity — SUVs will retain fuel choice.
- Flexible EV rollout — adapting to India’s readiness.
By balancing performance, luxury, and sustainability, Mercedes-Benz is positioning itself to stay ahead in India’s fast-changing luxury market.
