Mercedes-Benz India expects to hit growth next fiscal; rolls out V-Class MPV at Rs 1.4 crore

Mumbai, Mar 2 (PTI) German premium car maker Mercedes-Benz India on Monday said it is hopeful of posting growth in its vehicle sales next fiscal, though it may not be in double digits, as it rolled out a locally-assembled V-Class luxury MPV, priced at Rs 1.40 crore.

The company also said domestic market for the MPV segment has evolved post-Covid for the luxury MPV segment, which is also evident in the Top-End Vehicle sales, which grew 11 per cent last year.

"Indian fundamentals are quite strong, so growth should be possible. But I would still not peg a double-digit growth," Mercedes-Benz India Managing Director and CEO Santosh Iyer said.

The company was flattish on volumes in the Calendar Year 2025 so this financial year will be in similar direction, he said.

He, however, sounded optimistic of growth in CY 2026, saying, "March is the biggest month in this quarter so a lot will depend on how March pans out. If you look at the local economic setup, I think we have a strong GST collection and a lot of inquiries as well. But luxury is also a sentimental one sometimes these geopolitical topics may have an impact." He said the company has already increased price in January and the second price increase will take place in April so these are also "disablers to some extent".

"So we have to wait and see but overall we still feel this year should deliver growth, some growth," Iyer said.

The all-new six-seater V-Class, which has made a come back in the domestic first firt being introduced in 2019, comes with an extra-long wheelbase and debuts the petrol engine for the first time in India.

Besides, its AIRMATIC air suspension on both petrol and diesel is specifically developed for Indian roads, the company said.

"We are delighted to introduce the all-new V-Class for the Indian market, redefining the concept of a 'private suite' offering luxury, space and privacy to our exclusive customers.

"The V-Class addresses a growing trend amongst India's opulent customers and trend setters, who seek an oasis of personal space, tranquility and privacy, while travelling in the lap of luxury. The decision to start the local production of the V-Class further reinforces our India commitment," he said.

On bringing the V-Class back to the domestic market, he said, "Post-Covid we have seen a clear growth in the top-end vehicle segment, which grew by 11 per cent last year (for the company)." "So clearly the market dynamics have changed in the top-end segment pre- and post-Covid. Secondly, we could have brought this car a bit earlier as well but we didn't have an India-specific product because our customers gave very clear feedback." “First we got the product right, then we said if this product has to come in it would be in the region of Rs 2-odd crores and we said that maybe localising will help us to position this car at 1.40-crore which is a sweet spot to expand the market," he added.

This would be Mercedes-Benz India's 12th model to be produced at the company's Chakan Manufacturing facility in Pune, which has the capacity to produce 20,000 cars annually. PTI IAS MR