Mercedes-Benz, the renowned German luxury carmaker, is set to make a significant investment of Rs 200 crore in India throughout the year 2024. This strategic allocation will cover the development of new products, enhancements to manufacturing operations, and advancements in digitization, aimed at fortifying its market presence. The move follows the company’s exceptional performance in 2023, achieving record sales of 17,408 units.
Celebrating 30 years of Mercedes-Benz in India, the Managing Director & CEO, Santosh Iyer, highlighted the company’s commitment by stating, “This year marks a special year as we celebrate 30 years of Mercedes Benz in India. We are going to invest Rs 200 crore more into our factory in Pune. This takes a total investment of Rs 3,000 crore in India now. So that’s a strong statement of intent.”
The investments are earmarked for various purposes, including manufacturing operations, the launch of new products, and the integration of digital advancements into the manufacturing process.
In the upcoming year, Mercedes-Benz India is gearing up for an ambitious plan with over 12 product launches, including three electric vehicles (EVs). Notably, half of these launches will fall within the top end vehicle segment (TEV), with prices starting from Rs 1.5 crore onwards. The TEV segment has proven to be a significant driver for the brand’s aspirational positioning.
Highlighting the growth in the EV segment, Iyer mentioned, “EVs now comprise 4 per cent of our total sales and the segment witnessed a trebling of growth in 2023.” The company aims to further expand its EV portfolio with the introduction of three new EVs in 2024, covering the entry-luxury, core luxury, and TEV segments.
In addition to product launches, Mercedes-Benz India has introduced the new GLS luxury SUV in both petrol and diesel versions, catering to the preferences of a diverse consumer base. The company’s commitment to customer service is underscored by plans to establish 20 new workshops in 2024 across 10 new cities, including Jammu, Udaipur, Amritsar, Patna, Valsad, Agra, Kannur, and Kottayam.
Addressing the prospect of new entrants in the EV market, Iyer expressed confidence in a level playing field for existing manufacturers, while welcoming new players. He emphasized the company’s supportive stance towards free trade and imports, provided that fairness prevails for both existing investments and new entrants.
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