Mercedes targets triple-digit annual V-Class sales in India

Mercedes-Benz India plans to reintroduce the V-Class to expand its luxury vehicle market. Managing Director and CEO Santosh Iyer stated that the company aims to address a gap in the luxury van segment, rather than focus on high sales volumes. Mercedes last offered the V-Class in India in 2019, but the segment was not mature at that time.

Key Highlights

• Mercedes-Benz India plans to reintroduce the V-Class to expand its luxury vehicle market.
• Managing Director and CEO Santosh Iyer stated that the company aims to address a gap in the luxury van segment, rather than focus on high sales volumes.
• Mercedes last offered the V-Class in India in 2019, but the segment was not mature at that time.
• The new V-Class will target a price range between Rs 1 crore and Rs 2 crore.

V-Class Pricing and Localisation

The new V-Class will target a price range between Rs 1 crore and Rs 2 crore. Iyer explained that Rs 1.5 crore is the ideal price point for the Indian market. With local assembly, Mercedes could introduce the V-Class at Rs 1.4 crore. If fully imported, the price would approach Rs 2 crore. Localisation is intended to keep pricing competitive and support sustainable sales volumes. Mercedes expects to achieve triple-digit annual sales once the model stabilises.

Iyer emphasized that localisation is necessary to maintain reasonable pricing. The company expects most demand to come from affluent private buyers, rather than corporate fleet customers.

Sales Performance and Product Strategy

In 2025, Mercedes-Benz India sold 19,007 units, a decrease of about 2 percent year-on-year. Despite the decline in unit sales, the company recorded its highest-ever revenue in India. This increase is due to a richer product mix, which has raised the average selling price to around Rs 1 crore.

Mercedes plans to launch 12 new models in the current year. These will include both internal combustion and electric vehicles, with a focus on core and top-end segments. Iyer stated that the company prefers steady growth to protect brand value and residual values, rather than pursuing volume for its own sake.

Electrification and Future Plans

Electrification remains a long-term goal for Mercedes globally. The company is developing electric vans, but there are no immediate plans to launch a fully electric V-Class in India. Iyer said Mercedes will evaluate the possibility after the global launch of the electric V-Class. There are also no current plans to introduce a plug-in hybrid variant in India.