MD & CEO: Mercedes Will Not Chase Sales Numbers in Luxury Car Space

• Mercedes-Benz India achieved record Q1 FY sales (~4,238 units), driven by top-end and electric vehicles.
• CEO Santosh Iyer emphasized the firm's strategic choice to cater to demand patiently, focusing on premium positioning rather than chasing volume.
• The company's "value-over-volume" approach echoes older global strategies prioritizing quality over quantity

Mercedes-Benz India had its highest-ever first-quarter sales in FY 26, with 4,238 units sold, a 10% year-on-year rise due to strong demand for luxury vehicles and electric lineup. Sales of top-end models like the S-Class, Mercedes-Maybach, and AMG rose by 20%, while EV sales skyrocketed 157% to currently account for 8% of total volumes, despite no entry-level electric cars being available.

Mercedes-Benz India's CEO, Santosh Iyer, highlighted that the company values premiumisation, customer experience, and long-term profitability over volume targets. The core sector, which includes the C-Class, E-Class, GLC, and GLE, grew 10% and accounted for 60% of overall sales.

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The premium automobile plans to open 20-21 new service and retail stores in Tier-2 and Tier-3 cities, including Kanpur, Patna, Varanasi, and Agra. The company prioritizes service accessibility over aggressive sales. Despite macroeconomic obstacles such as pricing constraints and currency instability, the business anticipates long-term growth, leveraging EV interest, holiday-season demand, and a strong premium portfolio. Mercedes-Benz India's purposeful "quality-over-quantity" approach places the brand as the country's leading luxury automobile brand, outperforming competitors like BMW and Jaguar Land Rover. This indicates a shift in consumer preference toward high-end and sustainable mobility.