Stress in capital mkt also affects luxury car sales: Merc India CEO

SANTOSH Iyer, the first Indian to head Mercedes-Benz India as the chief executive and managing director in its 30-year history here, tells Benn Kochuveedan that people, mostly younger ones with double incomes, are happy to reward themselves with a luxury car today.

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As much as 90% of the cars sold here are core luxury (with a price tag of 70 lakh₹1.5 crore) and ultra-luxury (upwards of 1.5 crore going up to 11 crore.) In the past 30 years, the German luxe major has sold over 2 lakh units here, of which 1 lakh came in the last six years alone and almost 40% of them are under the watch of Iyer, who assumed office in January 2023. For the ultra-luxe Maybach, India is the 10th largest market for the Stuttgart auto giant selling over 500 units in 2024, taking the total number of Maybachs on our roads to over 1,500 since its entry a decade ago.

Selling 19,600 units in 2024, Merc controls over 40% of the volume share of the 51,000 units domestic luxury car market and over 50% when it comes to revenue share, thanks to focus on high-end models. Edited excerpts:

Is Mercedes moving towards an ultra-luxury brand now, going by the demand for the Maybach?