Speaking to ET Online on the sidelines of the launch, Managing Director and CEO Santosh Iyer discussed why Mercedes-Benz expects demand for performance cars to remain strong, how India is becoming better suited to electrified luxury vehicles and why hybrid technology deserves a second look.
Iyer said Mercedes-Benz’s confidence is backed by its recent sales performance. The company posted double-digit growth in the first half of 2026, while sales of top-end vehicles priced above ₹1.4 crore rose 20%, taking their share to around 28% of Mercedes-Benz India‘s total sales. Despite weaker market sentiment and uncertainty linked to capital markets, he said the company has not seen any change in demand for its most expensive models as buyers increasingly view luxury cars as more than just a means of transport.
Mercedes-Benz’s comments come as India’s luxury car market is showing signs of diverging from the broader passenger vehicle industry. While mass-market carmakers are grappling with rising costs, premium brands continue to benefit from affluent buyers who remain willing to spend on high-end vehicles. Against that backdrop, the German carmaker is expanding its performance portfolio while betting that demand for top-end models will remain resilient.
Mercedes-Benz believes luxury demand remains resilient
Luxury spending may fluctuate with the economy, but Iyer believes buyers at the top end continue to celebrate life’s milestones regardless of market swings.The company reported double-digit growth in the first half of the year, while sales of its top-end vehicles grew 20%, taking their contribution to nearly 28% of Mercedes-Benz India’s overall sales. According to Iyer, demand for luxury cars priced above ₹1.4 crore remains resilient because buying decisions are increasingly emotional rather than purely transactional.
“A car today is no longer just about getting from point A to point B,” he said.
“You are rewarding yourself, you are gifting your wife, yourself or your children. There’s a wedding, there is some occasion that you want to celebrate, and that cannot wait, right? Because those occasions, your anniversary or your 20th anniversary won’t come every year. And that’s what people are buying cars and they are enjoying life as well with some of these cars. So we don’t see any demand changing in the top end space.”
India is building the ecosystem for performance cars
India still has work to do on charging infrastructure, but Iyer believes the ecosystem needed for performance cars is expanding beyond chargers. He described the transition as a “chicken-and-egg” situation, saying infrastructure and customer demand must grow together while pointing to the emergence of private racing circuits across the country.
“If you see there are private race tracks coming in India unheard of. There is one in Pune, Nanoli which is coming up. There is one in Bangalore. There is one in Coimbatore. Then you have the Madras race track. Yes. So I think there are enough and more ecosystems developing,” he said.
He said better highways are also giving enthusiasts more opportunities to enjoy performance cars responsibly.
“Corridors like the Delhi-Dehradun Expressway or the Samruddhi Mahamarg allow customers to enjoy the capabilities of these cars without necessarily overspeeding,” he said.
Mercedes-Benz says growing customer demand supports that strategy. According to Iyer, AMG sales rose 50% in the first half of 2026, reinforcing demand for performance-focused luxury vehicles.
“The E53 AMG only adds to the portfolio. As a brand, we have the large portfolio and A45 AMG in the entry AMG segment at around a crore of rupees to the G63 AMG at around 5 and a half crores,” he added.
The biggest misconception about hybrid performance cars
While hybrids are commonly associated with fuel savings, Iyer believes that perception misses their biggest advantage in the performance segment.
“The moment it seems hybrid, people think it’s efficient. Because they think yeah, it’s fuel efficiency,” he said.
“But the fundamental difference in this car is of course it helps for performance because today if you look at Formula 1, the cars are all hybrid. We lead Formula 1 today, this year as well and there our cars are all hybrid technology. I think this is something that maybe some people mistake only for efficiency and not for performance. That may be the misconception.”
Read More: Mercedes-AMG E 53 plug-in hybrid debuts in India: Check price, range, features
Mercedes-Benz expands its EV strategy
On the electric vehicle business, Iyer said the company has received encouraging customer response for the e-Vitara, although production remains constrained.
He added that Mercedes-Benz is expanding its charging network to support EV adoption and has installed nearly 12,000 chargers across the country for e-Vitara customers.
Iyer said the company will continue to follow its multi-pathway strategy by offering multiple powertrain technologies across segments, while also increasing its focus on digitisation and artificial intelligence through a dedicated digital vertical. According to him, these technologies will increasingly be reflected in the company’s products and operations going forward.
Staying ahead of regulation
During the launch, Iyer also highlighted that all new models sold from January 2026 onwards would be E25 fuel compliant. He said this reflects Mercedes-Benz’s long-standing approach of preparing products ahead of regulatory requirements.
“Our customers don’t have to worry about it when they purchase the car,” he said.
He pointed out that the company’s BS-VI product rollout had already been E20 compliant years before it became widely discussed, adding that Mercedes-Benz intends to remain ahead on technical regulations.
Why padel fits the AMG brand
Mercedes-Benz also announced a partnership with the Indian Padel Tour during the launch.
Iyer said the partnership is less about sponsorship and more about matching the lifestyle of AMG buyers. He described padel as a fast-paced and technically demanding sport that reflects the character of AMG performance cars.
He added, “We are big on golf. It’s a performance sport. It’s very technical. On the other hand, racket sports like paddle are also intense, in a shorter format. So for customers who can’t spend the time or want to do it every day. I think a paddle is a very good bridge. So for us, it was a great fitment for the brand to do the India paddle league because this gives our customers an experience, they get exclusive privileges because they get direct access to the India paddle tour as such. So, and that’s the reason I said a high performance sport like paddle with high performance cars like AMG, it’s a perfect fit.”
ET Online