Mercedes-Benz India expects to sustain its market growth through 2026 [2] despite global supply-chain disruptions and rising crude prices.

This resilience suggests that India's high-end automotive sector can withstand macroeconomic volatility, signaling a shift in consumer behavior toward luxury electric mobility.

Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, said the luxury-car market remains resilient despite a series of shocks, including the West Asia conflict. He said the company is seeing a trend where more Indian buyers are choosing electric vehicles as their first luxury car purchase.

Addressing fuel standards, Iyer said cars sold in India since 2020 are fully compatible with E20 fuel [1]. This compatibility ensures that recent internal combustion engine models meet evolving environmental regulations without requiring mechanical overhauls.

However, the transition to electric power faces hurdles. While some reports identify charging infrastructure as the primary obstacle, Iyer said hybrid demand is being held back by limited product options. He said the launch of the S 450e plug-in hybrid will help bridge the gap between traditional engines and full electrification.

Deliveries for the S 450e are slated to start in late 2026 [3]. The company believes this specific model will address the current lack of diverse hybrid offerings in the luxury segment.

Iyer said the company remains confident in its growth strategy as it balances the rollout of new technology with the existing demand for prestige vehicles in major metropolitan areas.

“We are seeing more Indian buyers choosing EVs as their first luxury car.”

The strategic pivot toward plug-in hybrids like the S 450e indicates that Mercedes-Benz views hybrid technology as a necessary transitional phase for the Indian market. By addressing the 'product gap' while simultaneously confirming E20 fuel compatibility, the company is attempting to hedge against infrastructure deficits while capturing the growing demographic of first-time luxury buyers who prefer sustainable options.