Mumbai, March 2 German premium car maker Mercedes-Benz India said on Monday that it is hopeful of posting growth in its vehicle sales next fiscal, although it may not be in double digits, as it launched a locally-assembled V-Class luxury MPV, priced at Rs 1.40 crore.
The company also said that the domestic market for the MPV segment has evolved post-Covid, particularly for the luxury MPV segment, which is also evident in the Top-End Vehicle sales, which grew by 11 per cent last year.
"Indian fundamentals are quite strong, so growth should be possible. But I would still not peg a double-digit growth," said Mercedes-Benz India Managing Director and CEO Santosh Iyer.
The company expects flat volumes in the Calendar Year 2025, so this financial year will be similar, he said.
However, he expressed optimism about growth in CY 2026, saying, "March is the biggest month in this quarter, so a lot will depend on how March pans out. If you look at the local economic setup, I think we have strong GST collections and a lot of inquiries as well. But luxury is also a sentimental one, and these geopolitical topics may have an impact."
He said the company had already increased prices in January, and a second price increase will take place in April, which will also act as a "disabler" to some extent.
"So we have to wait and see, but overall, we still feel this year should deliver growth, some growth," Iyer said.
The all-new six-seater V-Class, which has made a comeback in the domestic market after being first introduced in 2019, comes with an extra-long wheelbase and debuts the petrol engine for the first time in India.
Besides, its AIRMATIC air suspension on both petrol and diesel is specifically developed for Indian roads, the company said.
"We are delighted to introduce the all-new V-Class for the Indian market, redefining the concept of a 'private suite' offering luxury, space, and privacy to our exclusive customers."
"The V-Class addresses a growing trend amongst India's opulent customers and trend setters, who seek an oasis of personal space, tranquility, and privacy, while travelling in the lap of luxury. The decision to start local production of the V-Class further reinforces our commitment to India," he said.
On bringing the V-Class back to the domestic market, he said, "Post-Covid, we have seen clear growth in the top-end vehicle segment, which grew by 11 per cent last year (for the company)."
"So clearly, the market dynamics have changed in the top-end segment pre- and post-Covid. Secondly, we could have brought this car a bit earlier, but we didn't have a product specifically for the Indian market, because our customers gave very clear feedback."
"First, we got the product right, then we said if this product has to come in, it would be in the region of Rs 2-odd crores, and we said that maybe localizing will help us to position this car at 1.40 crore, which is a sweet spot to expand the market," he added.
This will be Mercedes-Benz India's 12th model to be produced at the company's Chakan Manufacturing facility in Pune, which has the capacity to produce 20,000 cars annually.