India’s luxury car market remains underpenetrated, says Mercedes-Benz India executive
India’s luxury automobile market remains significantly underdeveloped, with penetration at around 2 percent of the total automotive sector, compared with 10 to 15 percent in markets such as the United States, Germany, and China, a senior Mercedes-Benz India executive said.
Brendon Sissing, Vice President (Sales & Marketing), Mercedes-Benz India, said the gap highlights both the untapped potential of the segment and the gradual evolution of India’s premium mobility market.
He was in Visakhapatnam on Monday to inaugurate a new Mercedes-Benz showroom in partnership with Silver Star. The company also showcased its CLA battery electric vehicle for customers in the city.
Speaking on the sidelines of the launch, Sissing said the company’s strategy in India is focused on expanding its presence beyond major metropolitan cities, improving accessibility and strengthening the overall customer experience across its retail network.
He said macroeconomic factors such as revised income tax slabs, potential interest rate cuts, increased foreign direct investment, and the government’s Make in India initiative could act as strong catalysts for luxury vehicle demand.
Outlining the company’s approach to emerging cities such as Visakhapatnam, he said Mercedes-Benz typically enters such markets by first establishing after-sales service and workshop infrastructure to build customer trust. Only after strengthening this foundation does the company move towards setting up full-scale retail showrooms.
The automaker is preparing an expansion plan for the second quarter of 2026, with more than 20 MAR20X-format outlets planned across high-growth emerging markets, alongside deeper penetration in cities such as Pune and Goa.
Sissing also noted that global geopolitical tensions and energy market volatility are contributing to a gradual shift in consumer preference towards electric vehicles.
To support this transition, Mercedes-Benz is expanding its MB Charge platform, which provides access to more than 9,000 charging points across India. The system is integrated with in-car navigation to help improve charging convenience and reduce range anxiety among EV customers.