German automaker Mercedes-Benz is strategically expanding its footprint in smaller Indian cities, anticipating robust growth in the demand for luxury cars. With the introduction of new GLA and AMG GLE 53 models, the company aims to bolster its sales and service infrastructure in non-metro areas to cater to the rising customer base.
Mercedes-Benz India’s Managing Director & CEO, Santosh Iyer, highlighted plans to establish 20 new workshops in 10 cities, including Jammu, Kanpur, and Patna. The initiative aims to ensure that customers in mini metros are within a two-hour drive of service centers, enhancing convenience and accessibility.
Recognizing the untapped potential in smaller cities, where luxury car penetration remains low compared to metros, Mercedes-Benz is looking to capitalize on the growth opportunities. Currently, top metros contribute to 70 percent of the annual sales, while the remaining 30 percent is derived from mini metros and smaller markets.
Despite the luxury car market accounting for just over 1 percent of India’s total passenger vehicle sales, Mercedes-Benz remains the market leader. The company’s penetration level in eight large cities and metros stands at 2.5 percent, contrasting with 0.4 percent in smaller towns.
The recent launch of the new GLA SUV, priced between Rs 50.5 lakh and Rs 56.9 lakh, underscores Mercedes-Benz’s commitment to expanding its SUV portfolio. Additionally, the AMG GLE 53 4MATIC, priced at Rs 1.85 crore, offers customization with over 7,000 combinations.
Mercedes-Benz India also revealed the Concept EQG, a near-production version of the electrified G wagon, emphasizing the brand’s commitment to an all-electric future. The Concept EQG is expected to debut later this year, aligning with Mercedes-Benz’s sustainability goals, although no specific date for its Indian launch has been provided.