Mercedes Benz lines up Rs 200 cr investment, to launch over 12 products in 2024

New Delhi, January 8

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German luxury carmaker Mercedes-Benz would invest Rs 200 crore in India this year on new products, manufacturing operations and digitisation, to strengthen its position after recording sales of 17,408 units in 2023, a top official of the company said on Monday.

Mercedes-Benz India would have more than 12 launches in 2024, including three electric vehicles (EVs), out of which half would be in the Top-end Vehicle Segment (TEV) and would be priced Rs 1.5 crore onwards.

“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 makes a total investment of Rs 3,000 crore in India. So that’s a strong statement of intent,” Mercedes-Benz India Managing Director & CEO Santosh Iyer said in an interview.

These investments would be towards manufacturing operations, new product startups and digitisation of the manufacturing process, he added.

In 2023, Iyer said, the company recorded its best-ever sales in its history in India with 17,408 units and a growth of 10 per cent.

Mercedes-Benz India had recorded its best-ever sales in 2022 when it clocked 15,822 units.

On the outlook for 2024, Iyer said the company is looking for “double-digit” growth despite volatility in both supply and demand.

Currently, the company’s order bank stands at 3,000 units.

On the product launch plan, Iyer said, “We are looking at more than 12 new car lines to be launched in 2024. 50 per cent of them will be in TVS. These will include three new EVs.”

The TEV segment continues to drive aspiration for the brand, Iyer said, adding that three new EVs to be launched in 2024 would build up the company’s EV portfolio.

“EVs now comprise 4 per cent of our total sales and the segment witnessed a trebling growth in 2023,” he added.

Mercedes-Benz India also launched its new GLS luxury SUV in both petrol and diesel versions priced at Rs 1.32 crore and Rs 1.37 crore, respectively.

Iyer said SUVs account for 55 per cent of the company’s total sales and sedans 45 per cent.

On three new EVs, he said it will be across the entry luxury, core luxury, and TEV segments.

When asked about the contribution of EVs to total sales going forward, he said, “We are still looking forward to 20-25 per cent of our sales coming from EVs in the next four years’ time.”

To get closer to customers in servicing, he said Mercedes-Benz India would create 20 new workshops in 2024 in 10 new cities, including Jammu, Udaipur, Amritsar, Patna, Valsad, Agra, Kannur and Kottayam.

On reports of American electric carmaker Tesla seeking special incentives to set up plant in India, Iyer said, “We are pretty confident that if the government announces any policy it will be a level playing field for the current manufacturers who have invested in India.” He, however, added that new players in the segment are welcome “because that will only intensify adoption of EVs to the market”.

“We have always been supportive of free trade and imports as long as it is a level playing field for the existing investments and new ones,” Iyer said.