As rivals invest, Mercedes-Benz doubles down on localisation, long-wheelbase luxury, and multi-powertrain flexibility to stay ahead.
16 Sep 2025 | 6931 Views | By Hormazd Sorabjee and Ketan Thakkar
Even as it generates growing interest in its AMG performance range in India, Mercedes-Benz is keeping long-wheelbase (LWB) chauffeur-driven models at the core of its India strategy.
The unmatched success of the E-Class LWB has set the template, and the Stuttgart-based luxury carmaker is now evaluating whether to extend ...
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Even as it generates growing interest in its AMG performance range in India, Mercedes-Benz is keeping long-wheelbase (LWB) chauffeur-driven models at the core of its India strategy.
The unmatched success of the E-Class LWB has set the template, and the Stuttgart-based luxury carmaker is now evaluating whether to extend this approach to other models.
“That’s something we are looking into because we have the technology and know-how to extend. Suppose we believe there’s a good market that fits better with our offerings than what we have right now.
In that case, we’ll look into it,” said Mathias Geisen, Member of the Board of Management of Mercedes-Benz Group AG, responsible for Marketing & Sales Mercedes-Benz Cars, speaking to Autocar Professional at the 2025 IAA Munich Mobility Show.
India: A Priority Growth Market
India continues to anchor Mercedes-Benz’s global growth story, with the brand holding the No. 1 position in the country’s luxury segment.
“India is definitely on our priority list… we have our own product facility in India. It’s a very, very important growth market,” Geisen said. “With the products we have in the pipeline, we can address this market pretty well.”
But competition is intensifying. “We are leading in India, which is nice, but it’s also getting tougher and tougher. Other OEMs also realise that India will be a market with strong growth — not just potential, but real growth — and they are investing more and more in CKD production,” he noted.
Diesel to Stay Relevant, EV Plans Remain Flexible
In contrast to global markets where diesel is under pressure, Mercedes-Benz sees it remaining central to India’s luxury space, particularly SUVs.
“There are no plans to discontinue diesel engines. We are well prepared for EU7,” Geisen confirmed.
Mercedes-Benz has recalibrated its global approach, moving from an EV-only path to a multi-powertrain strategy that blends EVs, hybrids, and ICE. This ensures that customers will continue to have a wide choice across powertrains in India.
“We can handle it if we have 50% of GLCs electric. If it’s 30%, we can handle that. If it’s 70%, we can handle that as well,” Geisen said, underscoring adaptability to demand.
The company already sells the EQC and EQB in India and is considering introducing additional EVs based on demand, infrastructure readiness, and incentives.
FTA Could Redraw Economics
The proposed India–EU free trade agreement (FTA) could reshape the economics of imports and local assembly.
“Of course, we have different scenarios that we always work with. Some of the scenarios, of course, also include this topic [FTA]. But we haven’t put any plans on hold compared with what was originally planned,” Geisen explained. “In general, we believe in free trade. Free trade always helps, and it also pushes the economy.”
Mercedes-Benz’s India strategy reflects a dual-track approach: expanding its AMG portfolio for performance enthusiasts while keeping long-wheelbase chauffeur-driven models at the heart of its luxury play.
By retaining diesel, offering flexible EV pathways, and staying agile on localisation and FTA outcomes, Mercedes-Benz is positioning itself to sustain leadership in an increasingly competitive Indian luxury car market.