Mercedes to expand locally made portfolio

Chennai : Mercedes-Benz India, the country’s top-selling luxury carmaker, plans to sustain its product offensive in 2026 with new launches, expansion into new locations and deeper localisation, as it looks to tap rising demand for high-end vehicles and emerging luxury mobility segments.

The German luxury automaker will launch 11 new models in the current calendar year, aimed at bringing global offerings to India faster while widening its luxury portfolio, Santosh Iyer , managing director and CEO of Mercedes-Benz India, told TOI .

Models priced above Rs 1.5 crore (on-road) accounted for nearly 25% of MercedesBenz India’s total sales last year, with its topend portfolio — comprising the SClass, Maybach and AMG range — registering around 11% year-on-year growth, reflecting rising demand among affluent buyers. The company sold 19,007 units in 2025.

In 2026, Mercedes-Benz plans to revamp around 20 retail facilities and expand into 10–11 new markets.
Iyer said the company hopes to achieve growth in 2026 despite geopolitical uncertainties and exchange-rate volatility. It has already implemented a 2% price increase in Jan and plans another revision in April due to continued dependence on imported components from Europe.

On Monday, the company entered the premium luxury van segment with the locally produced V-Class Extra Long Wheelbase (LWB). Positioned as a “private suite on wheels”, the V-Class will be offered at an introductory price of Rs 1.4 crore (ex-showroom, all-India) for both the diesel V300d and petrol V300 variants. According to Iyer, local assembly enabled Mercedes-Benz to reduce pricing from an earlier expected level of around Rs 1.82 crore.

“This is a segment that has remained largely untapped in the luxury market so far,” Iyer said, adding that the vehicle is expected to attract existing MercedesBenz customers seeking additional high-comfort mobility options for family and intercity travel.

Currently, Toyota and Lexus sell the Vellfire and LM as completely built units (CBUs) in this segment, which has an estimated annual volume potential of around 2,000 units.

With the V-Class joining the list of high-end vehicles assembled locally, another model is expected to be added to Mercedes-Benz India’s localisation portfolio later this year. Customers booking the V-Class at the introductory price will be protected from future price increases.