Mercedes-Benz to locally produce Maybach GLS in India, cut price by over ₹40 lakh
Mercedes-Benz India announces local production of ultra-luxury Maybach GLS, making India the second global market after the US to manufacture the SUV locally, resulting in significant price reduction of over ₹40 lakh. The company reported strategic performance with 19,007 unit sales, focusing on premium segments where top-end vehicles grew 11% and comprised 25% of total sales, while planning 12 new product launches and expanding EV infrastructure through MB.Charge Public service.
*this image is generated using AI for illustrative purposes only.
Mercedes-Benz India has announced the commencement of local production for its ultra-luxury Mercedes-Maybach GLS, a strategic move that significantly reduces prices for Indian buyers while highlighting India's growing prominence in the global luxury automotive market. This development positions India as only the second market worldwide, after the United States, to manufacture the Maybach GLS locally.
Substantial Price Reduction Through Localization
The localization initiative has enabled Mercedes-Benz to deliver substantial cost benefits to Indian customers. The pricing structure demonstrates the impact of local manufacturing on luxury vehicle accessibility:
| Parameter: | Details |
|---|---|
| Previous Price: | ₹3.17 crore |
| New Localized Price: | ₹2.75 crore |
| Customer Benefit: | Over ₹40 lakh reduction |
| Global Manufacturing: | Second market after US |
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, described the decision as a natural progression driven by strong demand from Indian buyers. "We have climbed into the top five global markets for Maybach in the world for the first time," Iyer stated. The largest-selling Maybach model in India is the GLS Maybach, which currently comes from the company's Tuscaloosa plant in Alabama.
Strong Performance Despite Market Challenges
Mercedes-Benz India reported sales of 19,007 units, representing a marginal decline as the company strategically focused on premium segments rather than participating in entry-luxury pricing wars. The company's performance metrics highlight this strategic shift:
| Performance Metrics: | Results |
|---|---|
| Total Sales: | 19,007 units |
| Vehicles Above ₹1.5 Crore: | 25% of total sales |
| Top-End Portfolio Growth: | 11% increase |
| EV Sales Growth: | 12% increase |
| EV Penetration (Top-End): | 20% |
"Sales of top-end vehicles grew by 11% and comprised 25% of all Mercedes-Benz sold in India," Iyer explained. The company maintained its disciplined approach to pricing, prioritizing residual value and brand integrity over volume chasing.
Ambitious Product Launch Strategy
Mercedes-Benz has outlined an aggressive expansion plan with 12 new product launches scheduled for the year. The company has already kick-started this initiative with premium offerings:
| New Launches: | Pricing |
|---|---|
| Mercedes-Maybach GLS Celebration Edition: | ₹4.10 crore |
| EQS SUV Celebration Edition (5-seater): | ₹1.34 crore |
| EQS SUV Celebration Edition (7-seater): | ₹1.48 crore |
| Total Planned Launches: | 12 new vehicles |
Enhanced Electric Vehicle Infrastructure
To support its electrification drive, Mercedes-Benz is introducing 'MB.Charge Public' in India, expanding its presence to 38 countries globally. The service provides comprehensive charging solutions for electric vehicle owners:
- Charging Network: Over 9,000 DC charging points
- Service Features: Real-time availability, seamless payments, charging history
- Customer Benefit: No extra cost for existing Mercedes-Benz BEV customers
- EV Market Performance: 8-9% overall penetration, 20% in top-end segment
Market Outlook and Pricing Strategy
Looking ahead, Mercedes-Benz expects single-digit growth in the luxury segment while managing currency headwinds. The company faces significant forex impact due to rupee depreciation against the euro, necessitating strategic price adjustments.
"There is still over 10% forex impact to be passed on," Iyer noted, explaining the company's plan to implement 2% price increases each quarter. Despite these challenges, Mercedes-Benz remains committed to its premium positioning and continues to strengthen its presence in India's top-five global Maybach markets, alongside China, the US, South Korea, and Germany.
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