By T Murrali  

Crossing very significant milestones and achieving stellar sales performance made 2019 very special for Mercedes-Benz in India. The German car maker celebrated 25 years of operations of its local entity Mercedes-Benz India that began with a local assembly facility based at the Tata Motors (then TELCO) premises, and the tenth anniversary of the independent Mercedes-Benz plant in Pune.

The year was also record-making for the company in defying the slowdown and selling more than 600 cars within a week during the festive season of 2019 bucking the automotive slowdown in the country since September 2018. This was over and above its outstanding sales performance a month ago when it delivered more than 200 cars in Maharashtra, especially in Mumbai, and Gujarat. It has also sold off the current GLE models about three months ahead of plan and has opened bookings for the upcoming new generation GLE scheduled to be launched before the Auto Expo 2020.

Mercedes-Benz India sold more than 10,500 units till October 2019. The year 2018 was the best ever as it sold 15,538 units with 1.4 percent growth over the previous year. It was the second year in a row that the company crossed sales of 15,000 units. In 2019 the company recorded its highest ever Q4 selling 3,871 units, thus registering a 3.3 percent y-o-y growth for Q4, and was able to achieve sales growth in a challenging market. Amidst strong macro-economic headwinds, Mercedes-Benz India sales volumes in Q4 also grew by 15.41 percent from Q3 2019 and the overall sales volume remained at 13,786 units from January-December 2019.

With its slogan ‘Best Never Rest’ the company carries forward the rich learning and experiences of the past 25 years to embark on a new journey towards reinventing itself for the future. As the inventors of automobile globally, Mercedes-Benz is highly confident of leading the luxury automotive industry which it pioneered in India, by not resting on past laurels and accolades but by striving to achieve excellence in the future.

The company’s factory in Pune makes nine different models including the sedans of the C-Class, E-Class, S-Class and CLA Coupé as well as Maybach S-Class and the SUVs GLA, GLC, GLE and GLS. The plant in India has been one of the first local assemblies of Mercedes-Benz to implement Virtual Reality technology, starting with the body shop training. As the implementation of Virtual Reality in the training process of the Indian plant has been a huge success, it is being implemented in other Mercedes-Benz assemblies around the world.

The Managing Director and CEO of Mercedes-Benz India, Martin Schwenk, is very upbeat about the future course of the company. When told that he is the only car company CEO in India to have roaring sales, he told this publication that the festive season had been satisfactory for the company as it saw overwhelming response to its products from across markets. This has made him even more confident. He said his company’s plans would be well implemented, especially to launch new products; it was obvious that he was being both practical and optimistic.

During a recent interaction Schwenk said that the company works with its dealers to see how it can increase their profitability by looking into their inventory and stock levels, using its product offerings and ‘wish-box’ initiatives to raise the numbers. But about the order book position he said that “it is business as usual.”

On Growth Track

From the overall sentiment among customers and the availability of finance in the market Schwenk expects the industry to grow again. “I can see, when I follow numbers, that everyone is carefully and prudently managing the situation. Inventory management is taking up a big portion of every OEM’s activity. The BS-IV to BS-VI change will create some kind of distortion. Bigger the distortion, bigger will be the inventories at that point in time. Retail numbers being higher than wholesale makes me believe that the market is getting more receptive now. If there is good awareness among all, we can move forward as an industry. Turbulence will be there but it should not be a major irritation. From the second half of 2020 this transition period will be over and we would probably see a normal growth scenario. Until then the market might behave in a way that is hard to assess depending on inventory levels, pricing, discounting and whatever is necessary. I would expect some distortion where we won’t be able to easily ascertain the natural growth momentum. But with the efforts taken by Government and industry we could expect things coming back to normal soon.”

On the transition to BS-VI he said, “Our change from BS-IV to VI usually goes with new models. We have a strategy which is basically built on major model upgrades and new models. That’s why our transition started with the S-class (last year) where we had a new model with all the technology and features in it. For our brand I don’t expect any pre-or-post-buy triggered by BS replacement.”

The V-class Elite was launched in 90 countries. In India the company registered three-digit sales of its V-class and he is happy with the growing demand though the volumes are very low. “Every time we start something fresh we are keen to ensure it gets adequate returns. We try to upgrade based on what the customers tell us. The V-class does give an element of luxury; you will feel the difference when you sit in it. We are happy that we were able to open a segment where nobody had been before.”

The fact that the V-class is in 90 countries shows that it has developed well. This model, unlike its predecessors, is very much a passenger car, almost like an SUV. This has boosted sales in many markets. The global company has seen substantially higher numbers than expected, in most of the markets, he said.

The model launched in India is the same as the model Mercedes-Benz sells in other markets. It is totally imported but it is configured according to what a particular market needs and the prospective customer demand. “We have used all the feedback generated to create an offering that fits very well in the market here. The pricing of the upper-end V-class range goes up from INR 68 lakh to INR 1.1 crore. That is a wide span where you have the V-class for many different purposes in that series.”

Schwenk said the economic slowdown has definitely impacted his company with the entire industry slowing down by at least 20 percent. “We don’t have full transparency as not many manufacturers are disclosing their numbers. It’s not always easy for us to estimate what the market is doing but we believe the luxury market is down by 15 to 20 percent. However, we have maintained our market share of 40 percent in the luxury segment.”

On the customer preference for diesel vis-a-vis petrol, he said it has not triggered too much of a question. “What the customers expect is that we give them the latest technology in any engine and meet the highest standards available. Customers are not too concerned about whether we go for BS-IV or BS-VI. They are more bothered about the features in the car, the styling, design and, of course, the price. In the smaller segment we do get questions on the type of engine used, petrol or diesel. Our diesel share is unchanged in the larger SUVs and bigger sedans. Our diesel engines are highly efficient; they not only follow BS-VI norms but also are 20 percent more fuel efficient and better in CO2 emissions. If you look at the whole mix, diesel does come out as a clean fuel with the introduction of BS-VI.”

However, not all models are uniform in giving fuel efficiency; it varies from model to model. In the E-Class vehicles, engine fuel efficiency in diesel would be more by 15-20 percent. It meets all the BS-VI norms; NOX and carbon emissions are much reduced. It is very competitive with the petrol engine.

Electric Vehicles

About electric vehicle (EV) he said, “We would also develop EVs; we have already made slow entries into the market but I think we are still in the early phase of seeing what the right set-up is for the electric. From a framework and infrastructure perspective there is still some work to be done while from the customer demand angle it is not really hot. But the electric trend will certainly grow.”

“Our company has quite a few cars lined up at the global level; by 2022 we will have 10 pure electric vehicles worldwide. We would also have plug-in hybrids that we consider specifically for countries like India with about 20 models coming within the next two years. Electric will definitely have its space though we have not introduced any model in India. Based on our global portfolio and how the market develops here we would take a call on this. We are not in a rush because there should be the right momentum to get it on the road. Considering our overall strategy for 2019 we have decided to begin with connectivity as Indians are very much into their mobile devices. That’s why ‘Mercedes Me Connect’ was launched, which connects not only the new cars but also cars that go back to 2007,” Schwenk said. (MT)

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Stellantis-owned Jeep India has launched the Jeep Compass 85th Anniversary Edition, limited to 85 units at prices starting at INR 2.67 million (ex-showroom).

The anniversary edition incorporates visual updates to the exterior and interior of the vehicle platform. External changes include 18-inch alloy wheels finished in gloss black alongside anniversary badging. The interior cabin features a black colour scheme paired with gold accents and contrast trim detailing.

Kumar Priyesh, Business Head and Director of Automotive Brands, Stellantis India, said, "The Jeep Compass has always been central to the Jeep story in India, bringing the brand's legendary capability, design and authenticity to customers who expect more from their SUV. As Jeep celebrates 85 years globally, the Compass 85th Anniversary Edition gives this iconic nameplate a distinctive new expression. With exclusive anniversary-inspired styling, curated accessories and safety technologies, this special edition has been crafted for customers who seek a Compass that feels even more personal, intelligent and exclusive."

The vehicle is offered with optional accessory packages under the brand's personalisation options. These packages add functional and cabin features, including sunroof illumination, ambient lighting, a digital inner rear-view mirror and integrated front and rear dashcams. Bookings for the limited-run vehicle have opened across the company's dealership network and online sales platform.

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German luxury car brand Mercedes-Benz India has opened its new sales facility in Lucknow in partnership with dealership operator T&T Motors. The outlet expands the company's network in Uttar Pradesh to 10 touchpoints across cities including Lucknow, Noida, Ghaziabad, Agra, Kanpur and Varanasi, contributing to a national presence of over 150 locations across more than 60 cities.

The new facility occupies 9,000 square feet, including over 5,000 square feet of carpet area and was completed in five months. The showroom accommodates four vehicle display bays, private and semi-private consultation zones, a lounge section for vehicle lines and a dedicated delivery bay. To support battery electric vehicles, the location incorporates a 180 kW DC fast charger with two charging bays, backed by a staff of 88 employees.

Brendon Sissing, Vice-President of Sales and Marketing, Mercedes-Benz India, said, “Mercedes-Benz continues to strengthen its luxury retail footprint across India, reflecting our ‘Go to Customer’ strategy. The inauguration of T&T Motors’ new facility in Lucknow marks yet another important milestone in bringing world-class luxury products, services and experiences closer to our customers. Uttar Pradesh remains an important emerging market for Mercedes-Benz, and the growing aspiration for luxury mobility in Lucknow presents strong growth potential for Mercedes-Benz. Through modern luxury infrastructure, personalised consultations, digital capabilities and EV readiness, we are elevating luxury retail experience for our discerning customers in the city.”

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Mumbai-headquartered automotive major Mahindra & Mahindra has unveiled its first global pick up christened Lifestyler, which will be launched in India as the Mahindra Scorpio Lifestyler. The vehicle will go on sale by April 2027 with prices starting below INR 1.97 million ex-showroom. 

First shown as a concept in Cape Town, South Africa, in August 2023, the pickup was designed at the Mahindra India Design Studio in Mumbai and developed at Mahindra Research Valley in Chennai. It is built on Mahindra’s next-generation body-on-frame architecture and is intended for both payload and lifestyle use. The company claims to have around 267 patents in terms of innovation for the Lifestyler.

Dr Velusamy R, President, Automotive Business, Mahindra & Mahindra, said, “From the outset, our vision was to create a world-class global pickup that raises the bar for the segment while remaining true to Mahindra's strengths in authentic capability and value. The Scorpio Lifestyler is a testament to the strong product development capabilities at Mahindra Research Valley (MRV). Built on our advanced next-generation body-on-frame architecture, it has been engineered to deliver the capability, durability, safety and refinement demanded by customers around the world.”

Pratap Bose, Chief Design and Creative Officer, Mahindra & Mahindra, said, “The Scorpio Lifestyler is inspired by how our customers work, play and explore. Combining bold exterior design, plush interiors and SUV-like comfort with unmistakable Mahindra toughness, it brings style and refinement to every journey. This philosophy is reflected in the three editions showcased today: Valley celebrates purposeful refinement, Reef embodies freedom and exploration, and Trail captures the spirit of boundless adventure. Together, they express our vision of a pickup that celebrates individuality while remaining rooted in capability, authenticity and the freedom to explore without limits.”

Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, said, “The Scorpio Lifestyler represents the convergence of global engineering and evolving customer aspirations. As we prepare for its India launch, we see a growing appetite among customers for a vehicle that delivers authentic capability without compromising on technology, safety, comfort or everyday usability. We are investing in building awareness, strengthening our network and creating the right ownership experience for this category. We believe the Scorpio Lifestyler has the potential to redefine expectations and shape the future of the pickup segment in India.”

While the technical details are still under the wraps, the company showcased three editions - the Valley Edition finished in Artemis Grey, the Reef Edition uses an Aquareef finish and the Trail Edition finished in Sahara Beige.

The Mahindra Lifestyler is aimed at the midsize lifestyle pickup segment in Australia and New Zealand, South Africa, Africa, the Middle East and Latin America. It has been developed to meet requirements for capability, durability, safety, technology and everyday use across those markets.

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Tata Motors Passenger Vehicles, one of the leading automakers in the country, is charting a confident course for FY2027. The company is sees its multi-powertrain leadership, capacity flexibility and industry-outperformance ambitions to drive a strong H2 for fiscal 2027.

Shailesh Chandra, Managing Director and CEO, of Tata Motors Passenger Vehicles, struck a distinctly forward-looking tone in the company’s Q1 FY27 virtual conference, outlining a strategy built on sustained demand for alternative-energy vehicles, flexible manufacturing, product intensity and disciplined capital allocation even as the broader industry navigates inflationary and commodity headwinds.

He characterised the remainder of FY2027 as a period of continued outperformance relative to the passenger-vehicle industry. Tata Motors at 14.1 percent had already delivered growth roughly twice the industry average of 7.9 percent in FY2026 and a robust 45 percent in Q1 FY2027 as against the industry average of 25.9 percent.

The management expects this momentum to persist. Industry volumes are projected in the mid-double-digit range of 15-20 percent for the remainder of the year in some scenarios.

Tata Motors, on the other hand, is targeting sustained growth even if overall industry expansion moderates to single digits in the second half because of a high base effect from strong H2 FY2026 demand.

Inventory levels are meaningfully lower than a year earlier, creating scope for healthier retail offtake. Q2 is expected to be more challenging for the industry as a whole due to cost pressures, with the second half potentially tighter still for conventional passenger vehicles.

Chandra, however, intends to defend and expand market share through timely product refreshes, facelifts and new nameplates across both ICE and electric portfolios, while prioritising supply-side capacity increases. Waiting periods across the Tata Motors range currently stand at 4-6 weeks, reflecting healthy demand.

Hatchbacks continue to contribute around 15-20 percent of the mix, while SUVs remain the structural growth engine. Export plans include opening a significant new market next year, with a dual focus on ICE and EV products; recent export growth has been driven primarily by South Africa.

Alternative Energy Mix

The shift toward alternative powertrains is central to Chandra’s vision. Industry EV penetration has reached approximately 8 percent – the highest among passenger-vehicle markets – and is expected to climb toward 10 percent by end-FY2027.

Tata Motors’ own EV share of its portfolio has risen from around 38 percent and is targeted at upwards of 40 percent (for the remainder of the year), supported by strong customer acceptance. EV demand has jumped sharply (management noted a 3-4 times increase relative to February levels for the company), but supply remains the binding constraint rather than underlying demand. Chandra revealed that the strong demand for EVs versus supply-side constraints has led to waiting periods for EVs of around 4-6 weeks.

CNG demand is robust: industry CNG share stands near 22 percent, while Tata Motors’ mix is higher at around 27 percent. The outlook remains positive as the CNG station network expands from roughly 8,500 to 15,000-16,000 stations in the coming year. CAFÉ norms (particularly CAFÉ 3 and CAFÉ 4) will further accelerate the push toward alternative-energy vehicles; for OEMs with credible EV offerings, electrification is the most powerful compliance lever.

Sharing his perspective on hybrid technology, Chandra stated that its share in the overall PV segment has stabilised at a modest 2-2.5 percent share. Tata Motors remains ready to introduce hybrids if market conditions warrant, but current emphasis is clearly on CNG and pure electric.

In Q1 the combined CNG-plus-electric mix rose from 19-21 percent to 24 percent. Management is optimistic that EV volumes for the company could grow 70 percent in FY2027, even allowing for some high-base effects in the second half, with overall company growth of 10-15 percent still feasible.

Capacity, Cost Pressures and Capital Plans

For Tata Motors internal EV capacity is not a bottleneck since production systems are fungible and flexible; capacity has already been stepped up from 9,000 to 13,000-14,000 units and reached more than 15,000 units last month, with further increases planned.

Responding to lower-than-anticipated sales for the popular Sierra SUV, the company attributed the temporary production impact to constraints from casting and sheet-metal suppliers plus a five-day production loss at the Sanand plant due to heavy rains, but corrective actions are under way.

Profitability in the recent period was pressured primarily by commodity-price inflation (approximately 4-4.5 percent impact) plus roughly 1 percent from other factors. Cost-reduction initiatives have partially offset these headwinds; in a normalised quarter, margins would have expanded more significantly. Certain PLI benefits were deferred because of new-product launches but will be reapplied in due course.

However, it is important to note that Chandra has emphasised that CAPEX plans remain unchanged at around 6-8 percent of revenue, which will continue to be directed toward new products, technologies and capacity expansion. Management sees no need to revise the programme despite margin pressure.

On the E20 contamination issue raised in the market, Tata Motors has not experienced customer reports and was not among the OEMs that submitted data on the matter.

Jaguar Land Rover Perspective

Richard Molyneux, CFO of JLR, noted that the luxury brand is a truly global business with only a small percentage of sales in India. China remains challenging, production of legacy products (including Jaguar) has been wound down, and a fire plus broader global slowdown affected Range Rover output. Q1 is seasonally soft for JLR, but the team is optimistic about sequential improvement. India is viewed as a significant growth market going forward, supported by existing domestic assembly and imports, with plans to expand the brand’s presence rapidly.

Chandra’s message is one of controlled confidence. Tata Motors Passenger Vehicles enters the balance of FY2027 with lower inventories, a flexible multi-powertrain portfolio that is already capturing rising CNG and EV demand, fungible capacity that can scale with the market, and an intact investment programme focused on product and technology. While the industry faces near-term cost and base-effect challenges, the company’s leadership in alternative energy, combined with ongoing product intensity and supply-side focus, positions it to continue outgrowing the market and to deepen its role in India’s evolving mobility landscape.

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