Luxury car segment has massive headroom for growth in India

The luxury automobile sector in India possesses immense untapped potential, given that its penetration remains at a meager two percent of the overall automotive market compared to 10 percent to 15 percent in developed nations like the US, Germany, and China, said Brendon Sissing, vice president (sales & marketing) at Mercedes-Benz India.

He was in the city on Monday to inaugurate the company’s luxury showroom partnered with Silver Star here. The company also showcased its new CLA battery electric vehicle to the local customers on the occasion.

Speaking to The Hindu on the sidelines on the company’s strategic outlook following the expansion of its retail network, Brendon Sissing, highlighted that deep-diving into diverse domestic market potentials, increasing accessibility, and elevating customer experiences remain top organisational priorities.

Factors like revised income tax slabs, potential interest rate reductions, foreign direct investment, and the government’s aggressive push for Make in India will act as major catalysts to support luxury vehicle sales, he said.

Detailing the luxury carmaker’s deliberate penetration strategy into emerging Tier-II and Tier-III cities like Visakhapatnam, he said that Mercedes-Benz establishes proximity with a robust workshop and service setup first to earn customer confidence. Once the operational groundwork is laid by putting feet on the street and gaining a decent feel for the local market potential, the company scales up to build full-fledged sales showrooms.

Looking ahead, Mercedes-Benz India reveals an aggressive expansion roadmap for the second quarter of 2026, aiming to add over 20 world-class MAR20X outlets across high-potential emerging markets, while simultaneously deepening its footprint in regions like Pune and Goa.

Amid ongoing global uncertainties and geopolitical conflicts in West Asia influencing energy dynamics, the company is observing a steady shift in customer confidence toward electric alternatives. To support this transition alongside government incentives, the automaker is expanding its MB Charge aggregated platform, offering electric vehicle buyers seamless access to over 9,000 high-performance charging stations nationwide, fully integrated with intuitive in-car navigation systems to eliminate range anxiety.