Mercedes-Benz is focusing on India by balancing the growing demand for its AMG performance range with an emphasis on long-wheelbase chauffeur-driven models.

The success of the E-Class LWB has set the precedent, and the Stuttgart-based carmaker is evaluating whether this approach should be applied to other models.

"This is something under consideration because the technology and expertise to extend exist. If it is believed that there is a market which aligns more effectively with the portfolio than the current offerings, the matter will be examined," stated Mathias Geisen, Member of the Board of Management of Mercedes-Benz Group AG, responsible for Marketing & Sales Mercedes-Benz Cars, in a discussion with media sources at the 2025 IAA Munich Mobility Show.

India: a priority market

India remains a significant part of Mercedes-Benz's global growth strategy, with the company holding the leading position in the country's luxury vehicle segment.

"India is a priority market. A dedicated product facility is already established in the country, and with the products currently in development, the market can be addressed effectively," Geisen remarked.

Competition, however, is intensifying. "Mercedes-Benz leads in India, but the challenge is increasing. Other OEMs also recognise India as a market with strong growth and are investing more in CKD production," he further added.

Diesel to stay relevant, EV plans flexible

In contrast to global markets where diesel demand is declining, Mercedes-Benz expects it to remain important in India's luxury segment, particularly SUVs.

"There are no plans to discontinue diesel engines. Preparations for EU7 compliance are already in place," Geisen confirmed.

The company has adjusted its global strategy from an EV-only focus to a multi-powertrain approach, combining EVs, hybrids, and internal combustion engines. This provides Indian customers with a choice across technologies.

"Whether 50% of GLC sales are electric, 30%, or even 70%, the company is prepared to manage demand accordingly," Geisen stated.

The EQC and EQB are already on sale in India, and further EV introductions are under consideration depending on demand, infrastructure, and incentives.

FTA could change economics

The proposed India-EU free trade agreement (FTA) could alter the economics of imports and local assembly.

"Several scenarios are consistently assessed, and the FTA is one of them. However, no existing plans have been put on hold compared with the original roadmap. In principle, free trade is beneficial, as it supports both the economy and the market," Geisen explained.

Strategy for India

Mercedes-Benz's India strategy is based on two key elements: expanding the AMG portfolio to meet performance-oriented demand, while maintaining LWB chauffeur-driven models at the core of its luxury line-up.

By retaining diesel, adopting a flexible EV approach, and adjusting to localisation and potential FTA outcomes, the company seeks to remain competitive in the Indian luxury vehicle market.