One in four Mercedes Benz sold in India is over Rs 1.5 crore, company generates revenue of Rs 3,000 crore from high-end cars
The maker of AMG performance cars and S Class has already hit a mark of 25 percent in the first five months of 2023.
One in every four cars sold by Mercedes Benz India comes from a price bracket over Rs 1.5 crore, the category defined as the TEV or ‘top end vehicles’ by the company.
The maker of AMG performance cars and S Class has already hit a mark of 25 percent in the first five months of 2023. The share from the TEV contribution has more than doubled from 12 percent that it was in 2018.
Speaking on the sidelines of the launch of the SL 55, Santosh Iyer, MD and CEO of Mercedes Benz India told Autocar Professional, “We are witnessing a structural change in the Indian market. The buyers of luxury cars are more discerning and are willing to pay the extra price for high-end products. It is clearly visible in other luxury segments like watches. Our TEV sales have already doubled this year and there is a strong offtake in the market leading to a long waiting period.”
Mercedes Benz sold over 1,700 units of TEVs priced over Rs 1.5 crore in the first five months of this calendar year amounting to almost Rs 3,000 crore or Euro 300 million.
Remarkably, the share in India is higher than the global average of 20 percent, wherein the maker of the three-pointed star sold over 92,000 cars in the total sales of five lakh units globally.
Iyer added, “We expect this share of TEVs to only move up in line with the global direction. We have also said, 25 percent of total sales will be from battery electric vehicles. So yes, the share of TEVs in our total sales will only move up. The emphasis is on value over volumes."
The TEV segment comprises vehicles like the GLS, the S-Class, GLE Coupe, E 63, EQS, GLS Maybach, S-Class Maybach, EQS and AMG G 63.
While the top end of the market is growing faster, the core luxury segment continues to have strong demand for the Mercedes-Benz brand, says the company.
The company is sitting on an assured order book of over 3,500 vehicles at the end of May.
Mercedes Benz had posted its record sales in India in 2022 at 15,822 units, out of which 3500 units were the top end vehicles.
Iyer says Mercedes-Benz will post another record year and will continue to grow by double digit in 2023.
The product excitement will continue with four more models likely to be launch in the second half of 2023, including the much awaited GLC SUV in the Q3 2023.
(With inputs from Manobhava Baruah)
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