Mercedes-Benz annual sales up 4 per cent; expects rate cut to spur demand

The luxury carmaker sold 18,928 units in India in 2024-25, up from its previously recorded best-ever sales of 18,123 units in 2023-24

• India Weekly
• 10 April, 2025

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By: India Weekly

GERMAN luxury carmaker Mercedes-Benz on Thursday (10) reported a 4.44 per cent growth in its sales to 18,928 units in India in 2024-25, with one out of every four cars sold priced above ₹15 million (£134,628).

However, in January-March this year, Mercedes-Benz India’s sales declined by 11.8 per cent to 4,775 units compared to 5,412 units in the year-ago period, impacted by the high base effect and a slowdown in the entry-luxury segment.

The company is hopeful that the RBI’s rate cut will help spur demand, company Managing Director and CEO Santosh Iyer told PTI.

Mercedes-Benz India had previously recorded its best-ever sales in 2023-24 at 18,123 units.

When asked about the sales dip in Q1 2025, he said, “The decline is more coming from the entry-luxury segment, in which we are not participating in some of the price points like sub-₹5 million”.

The company witnessed a 28 per cent decline in sales of its entry luxury segment cars in Q1 of 2025.

Mercedes-Benz, which opened its first luxury ‘MAR 20X’ outlet last week in Agra, said it plans to open such outlets in key emerging markets like Kanpur, Varanasi and Jammu in Q2 2025, with plans to have 21 new MAR 20X outlets in 2025.

Lexus India reports 19 per cent growth

Luxury carmaker Lexus India on Thursday said its retail sales increased 19 per cent for FY25 as compared to FY24.

The company’s retail sales increased 17 per cent in the fourth quarter as compared to the same period last fiscal, the company said in a statement.

It, however, did not share exact sales number.

The NX model led the company’s growth in the January -March quarter, highlighting its popularity among Indian consumers seeking luxury SUVs, it added.

The LM model also demonstrated outstanding demand, solidifying its appeal in the luxury mobility segment, Lexus India said.

In March 2025, Lexus India said it has clocked the highest-ever monthly sales to date.

Marking eight years of operations in India, with an overall robust growth, Lexus India said it remains optimistic about sustaining this positive momentum throughout 2025.