Mercedes-Benz India shifts luxury strategy towards experiences and high-value models

The Story in Brief

Mercedes-Benz India is increasing its use of exclusive experiences, AI-led personalisation and digital marketing as luxury car buyers spread across platforms. The company extends launches through regional screenings, dealer events and customer activations, while offering access to Formula One races, factories, cultural programmes and driving events. Retail sales fell 2.85% to 19,007 units in 2025, but annual revenue reached a record high. Vehicles priced above Rs 1.25 crore grew 11% of sales, while Mercedes-AMG deliveries rose 34%. Entry-level models declined 20%, supporting the company’s shift from volume towards higher-value sales.

Younger, technology-focused buyers are entering the segment, with the CLA acting as an acquisition model, especially in Mumbai, Delhi and Bengaluru. Mercedes-Benz India is using customer data to create smaller audience segments and shorter digital content, but is still assessing whether Connected TV offers sufficient value. Its marketing chief said the company wants ownership to begin a longer relationship, rather than end with the purchase.

The Indian Opinion

The loudest story here could be that luxury demand is either collapsing or that expensive experiences alone guarantee growth. Neither follows from the figures. Sales fell, yet revenue and top-end demand rose, while entry-level volumes weakened. AI and curated events may improve targeting, but they cannot replace product quality, service and affordability for buyers. The useful test is whether revenue and AMG growth continue without further dependence on shrinking entry-level sales.

Source: brandequity.economictimes.indiatimes.com

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