Fast paced growth of top end models jack up Mercedes’ average selling price in 2024

Pune: The average selling price of Mercedes-Benz India cars rose nearly 7% to Rs95 lakh in 2024 from Rs89 lakh in 2023 backed by demand for its top-end models or those costing at least Rs1.5 crore. Sales of such models including the Maybach S Class, AMG, and GLE advanced 30% last year.One in every four cars sold by the local arm of the German luxury carmaker during the year was a top-end model, said a top executive at Mercedes-Benz India. The weighted average price of Mercedes-Benz models—at Rs95,44,690—was higher than the industry’s Rs90,60,996, as per JATO Dynamics.

“Our average selling prices have gone up significantly. It clearly shows that we are not selling on discount,” Santosh Iyer, MD & CEO, Mercedes-Benz India told ET.

The country’s top luxury car maker closed 2024 with record sales of 19,565 vehicles, a 12.4% increase from the year before. It beat India’s overall luxury car segment which grew 6% to 51,200 units last year—the slowest pace in three years. Mercedes-Benz India competes with its German rivals BMW and Audi, and others like Jaguar Land Rover and Volvo.

“We have been driving the growth in luxury significantly, thanks to the new products—the new E Class, and the new EVs that we launched,” said Iyer.

The company’s EV penetration increased 6% and advanced 94% year-on-year, he said./not clear/Mercedes-Benz India started the New Year with an order book of 2,000 cars as some of its key top-end models including the EQS SUV are sold out till April.Iyer steered clear of giving sales guidance for the current year. “The performance of the overall market is dependent on what other brands do. We are focused on our strategy.”

This year, Mercedes-Benz plans to introduce eight models as it seeks to retain its leadership of the Indian market. This includes refreshed versions of the existing cars, special editions, and completely new models, said Iyer.

“We have enough consumer demand, but the macro economy, geopolitical climate, along with exchange rate will be the key monitorable,” he said.

He added the weakening of the rupee will not impact its costs due to the company’s nil exposure to the dollar.

Mercedes-Benz is looking to add 20 touch points this year to the current 125. Most will open in cities such as Jammu, Patna, Kanpur, and Agra where it currently doesn’t have a presence. Also, its 23 dealer partners will invest a total of Rs450 crore over the next few years to transform the dealerships to new luxury formats.