Mercedes-Benz India - Comprehensive Analysis Report

Summary

Mercedes-Benz India Pvt. Ltd., established in 1994 as a wholly-owned subsidiary of the Mercedes-Benz Group, pioneered the luxury car market in India. Headquartered in Chakan, Pune, Maharashtra, the company's mission is to lead the premium automotive segment through innovation, focusing on clean energy, sustainable practices, and cutting-edge technology to provide an exceptional customer experience. Their vision is to make India one of the most important markets.

1. Strategic Focus & Objectives

Core Objectives

Grow top-end vehicle and core segments while streamlining the entry-level vertical.

Focus on premiumization through top-end electrification and superior customer experience.

Strengthen its position in emerging cities with a premium-only approach.

Enhance brand desirability and customer loyalty through exclusive events and experiences.

Specialization Areas

Expertise in luxury car manufacturing and sales.

Emphasis on electric mobility solutions and sustainable practices.

Proprietary technologies leveraging data, AI, and generative AI.

Research and development in mobility and clean energy.

Target Markets

Primary target market includes affluent consumers seeking luxury vehicles.

Focus on expanding presence in emerging cities and catering to evolving customer preferences.

Targeting a demographic that values opulence, advanced features, and brand prestige.

2. Financial Overview

Funding History

For the financial year ending March 31, 2024, the operating revenue range is over INR 500 cr.

In fiscal year 2023, Mercedes-Benz India recorded a revenue of Rs 10,450 crore, a 64% increase, and a net profit increase of 91% to Rs 884 crore; the EBITDA margin stood at 13.4%.

In 2024, Mercedes-Benz plans to invest ₹200 crore in India towards new product launches, manufacturing operations, and digitization. This will bring the total investment in India to ₹3,000 crore.

3. Product Pipeline

Key Products/Services

New Car Launches: Over a dozen new cars planned for introduction in 2024, with more than 50% being higher-end variants. In 2025, eight launches are planned, primarily focusing on the top-end luxury vehicle segment.

Electric Vehicles (EVs): Expanding the EV portfolio is a key focus; Mercedes-Benz is ready to invest $500 million in its Indian EV business, contingent upon favorable GST conditions.

4. Technology & Innovation

Technology Stack

Focus on mobility, clean energy, and sustainable practices through R&D centers in Bangalore and Pune.

Focus on data and AI, electric mobility, and transformative technologies such as generative AI.

5. Leadership & Management

Executive Team

Santosh Iyer: Managing Director & CEO since January 1, 2023. He has held leadership roles across Sales, Marketing, Customer Services, Internal Communications, and CRM since 2009.

Emrah Ozer: CFO for Indian operations (appointed January 1, 2025).

Krishna Kulkarni: Principal Engineer/ Technical Specialist.

Shraddha Ukalkar: Chief Information Officer.

Dr. Shyam Sunder: Head of External Affairs and Corporate Citizenship (effective from August 26, 2024).

Recent Leadership Changes

Santosh Iyer was appointed MD & CEO effective January 1, 2023, succeeding Martin Schwenk.

Emrah Ozer was appointed CFO for Indian operations effective January 1, 2025, succeeding Evren Cakabey.

6. Competitive Analysis

Major Competitors

Audi: Competes in the luxury car market in India.

BMW: Competes in the luxury car market in India with key competitive strategies involving dealership expansion and offering sporty car options.

Competitive Positioning: Mercedes-Benz focuses on events such as Mercedes Trophy and AMG Driving Academy to build brand awareness and garner customer response. In 2023, Mercedes Benz India sold over 18,000 vehicles compared to approximately 14,000 and 8,000 vehicles sold by BMW and Audi respectively.

7. Market Analysis

Market Overview

The luxury car segment in India is experiencing growth, driven by economic expansion and increasing affluence.

Consumer preferences are shifting towards opulence and advanced features, with rising average prices of Mercedes-Benz vehicles and increased SUV popularity.

8. Strategic Partnerships

Strategic Partnerships

Partnered with DPIIT to boost the startup ecosystem through infrastructure, mentorship, funding access, and market connections.

MBRDI signed a five-year Master Research Agreement (MRA) with BITS Pilani for advanced technology research.

MBRDI has also signed an MoU with the Indian Institute of Science (IISc) for collaborative research in sustainable mobility, with a focus on electric vehicles (EV).