India has emerged as a strategically critical market for Mercedes-Benz’s global ultra-luxury ambitions, with the German automaker confirming that it will begin local production of the Mercedes-Maybach GLS in the country. The move makes India the first country outside the United States to roll out the ultra-luxury SUV locally, underscoring the nation’s rising importance in the global Maybach portfolio.

The decision follows India’s entry into the top five global markets for the Maybach brand in 2025, alongside China, the United States, South Korea, and Germany. Mercedes-Benz India Managing Director and CEO Santosh Iyer described the development as a milestone that reflects both growing demand and the brand’s confidence in the Indian luxury car buyer.

Local Production of GLS Maybach: A Strategic Shift

The Mercedes-Maybach GLS, currently imported from the company’s Tuscaloosa manufacturing facility in Alabama, will now be locally assembled in India to cater specifically to domestic demand. While production in the US will continue unchanged for global markets, the Indian localisation is aimed at improving accessibility and strengthening Mercedes-Benz’s ultra-luxury footprint in the country.

“We have climbed into the top five global markets for Maybach in the world for the first time in 2025. The largest-selling Maybach in India is the GLS Maybach. This model currently comes from the US, but we are localising the GLS Maybach in India,” Iyer said.

A key outcome of this localisation strategy is pricing. Once assembled locally, the Mercedes-Maybach GLS will be priced at Rs 2.75 crore, a significant reduction from its current Rs 3.17 crore price tag. The move is expected to broaden the appeal of the ultra-luxury SUV among Indian buyers while also helping mitigate the impact of import duties and logistics costs.

Navigating Global Trade and Tariff Challenges

The decision to localise comes at a time when global trade dynamics remain uncertain, particularly amid tariff-related discussions between India and the US. However, Mercedes-Benz has emphasised that its India plans are driven by market demand rather than geopolitical pressure.

Addressing concerns over potential tariff implications, Iyer noted that Mercedes-Benz, as a multinational company operating across regions, is accustomed to adapting to evolving trade environments. He clarified that local assembly in India does not signal any reduction in production at the US plant.

“We are not stopping production of the GLS Maybach in the US. That is going to continue. This is more for the local requirement,” he said.

India’s Growing Influence in the Maybach Ecosystem

India’s inclusion among the world’s top five Maybach markets highlights a broader shift in luxury consumption patterns. The country’s ultra-high-net-worth individuals and affluent customers are increasingly gravitating toward chauffeur-driven, high-end vehicles that prioritise comfort, exclusivity, and technology.

The GLS Maybach, in particular, has emerged as the most popular Maybach model in India, driven by its rear-seat luxury focus and commanding road presence. Mercedes-Benz’s decision to localise the model signals long-term confidence in sustained demand for ultra-luxury vehicles despite broader economic and currency-related pressures.

Strong Product Offensive Planned for 2026

Looking ahead, Mercedes-Benz India has outlined an aggressive product strategy for calendar year 2026. The company plans to introduce 12 new vehicles across internal combustion and electric segments, reinforcing its leadership position in the luxury car market.

The 2026 launch cycle was kicked off with the introduction of two special-edition models: the Mercedes-Maybach GLS Celebration Edition and the Mercedes-Benz EQS SUV Celebration Edition. These launches reflect the brand’s dual focus on top-end luxury and premium electrification.

Mercedes-Maybach GLS Celebration Edition: Ultra-Luxury Elevated

Priced at Rs 4.10 crore (ex-showroom), the Mercedes-Maybach GLS Celebration Edition has been introduced to commemorate the strong performance of the Maybach brand in India. The model is powered by a 3,982cc V8 petrol engine that produces 557hp and 770Nm of torque, paired with a 9G-Tronic automatic transmission.

Performance figures remain impressive for an ultra-luxury SUV, with the GLS Maybach accelerating from 0 to 100 kmph in 4.9 seconds and achieving an electronically limited top speed of 250 kmph. Ride comfort is enhanced through E-Active Body Control suspension, designed to deliver superior comfort, refined handling, and improved off-road capability.

The GLS Maybach’s cabin is tailored for chauffeur-driven luxury. Rear passengers are treated to individual executive seats, a full-length centre console, folding rear tables, and a 9.6-litre refrigerated compartment integrated into the rear armrest. Additional highlights include Manufaktur leather upholstery, bespoke Maybach detailing, exclusive wheel finishes, and signature two-tone paint options.

Technology and comfort features include a Burmester high-end 3D surround sound system with 29 speakers and 1,610W output, along with the Energizing Package Plus that offers seat climate control and multiple massage functions.

EQS SUV Celebration Edition: Strengthening the Electric Luxury Portfolio

Alongside the Maybach GLS, Mercedes-Benz has also introduced the EQS SUV Celebration Edition, reinforcing its leadership in the premium electric SUV segment. The EQS SUV is available in EQS 450 and EQS 580 variants, with prices starting at Rs 1.34 crore for the five-seater and Rs 1.48 crore for the seven-seater (ex-showroom).

Both variants are powered by a 122kWh battery pack that supports DC fast charging up to 200kW, enabling a 10–80 per cent charge in just 31 minutes. The EQS SUV 450 delivers 265kW of power and 800Nm of torque, with an ARAI-certified driving range of 775km. The more powerful EQS SUV 580 produces 400kW and 858Nm, offering a range of up to 809km.

Standard features across the range include 4Matic all-wheel drive and Airmatic air suspension, ensuring a blend of performance, stability, and ride comfort. The EQS SUV 580 continues to offer a seven-seat layout, while the EQS SUV 450 is positioned as a five-seater. Enhanced rear-seat comfort features and AMG Line styling on select variants further elevate the model’s appeal.

The EQS SUV has emerged as Mercedes-Benz’s highest-selling luxury EV in India, reflecting growing acceptance of premium electric mobility among Indian buyers.

Sales Performance and Strategic Focus in 2025

Mercedes-Benz India reported total sales of 19,007 units in 2025, marking a marginal decline compared to 2024. The dip was a deliberate outcome of the company’s strategy to prioritise profitability and brand equity over volume growth, particularly by avoiding aggressive discounting in the entry luxury segment.

Instead, the brand doubled down on its top-end vehicles (TEVs)—models priced above Rs 1.5 crore. Sales in this segment grew by 11 per cent and accounted for 25 per cent of total Mercedes-Benz sales in India during the year.

Electric Vehicles Gain Momentum

Electric vehicles also played an increasingly important role in Mercedes-Benz India’s portfolio. EV sales grew by 12 per cent in 2025, with overall EV penetration reaching 8–9 per cent of the brand’s total sales. Notably, EV adoption in the top-end segment rose sharply, with 20 per cent of TEV customers opting for electric models.

To further enhance the EV ownership experience, Mercedes-Benz is introducing MB.Charge Public in India. Already operational in 37 countries, the service will allow existing Mercedes-Benz battery electric vehicle customers to access over 9,000 DC fast-charging points across India at no additional cost.

The platform integrates multiple charging partners, provides real-time charger availability, enables seamless digital payments, and allows users to track charging history through a single interface.

Pricing Pressures and Market Outlook for 2026

Despite strong demand at the top end, the broader luxury car market in India is expected to grow in single digits in 2026. One of the primary challenges remains currency volatility. The depreciation of the rupee against the euro has significantly increased input costs for luxury carmakers.

Mercedes-Benz has already announced plans to increase prices by 2 per cent every quarter in 2026. Even after price hikes of 1 per cent in Q1 and 2 per cent each in Q2 and Q3 of the previous year, the company estimates that more than 10 per cent of forex impact still remains to be passed on.

Unlike the mass-market segment, which has seen some relief from GST-related changes, the luxury segment continues to feel the pressure of unfavourable exchange rates.

A Defining Phase for Mercedes-Benz India

With local production of the GLS Maybach, a robust pipeline of new launches, and expanding EV infrastructure, Mercedes-Benz India is entering a defining phase of growth. The company’s strategy reflects a clear shift toward high-margin, high-value vehicles while continuing to invest in electrification and customer experience.

As India cements its position among the world’s most important ultra-luxury car markets, Mercedes-Benz’s latest moves suggest that the brand sees the country not just as a growth opportunity—but as a cornerstone of its global luxury strategy.

With inputs from agencies

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