Santosh Iyer, the MD & CEO of Mercedes-Benz India, recently took the iconic G-Class off-roading, showcasing its capabilities and discussing the brand’s business performance. Iyer emphasized that the G-Class can safely drive on a lateral slope of up to 35 degrees without tipping over, demonstrating its exceptional engineering. He also highlighted the brand’s guiding philosophy, “Das Beste oder Nichts” or “The Best or Nothing,” which represents their commitment to excellence.
Regarding the recent GST 2.0 reforms, Iyer shared that luxury cars have become more affordable, with price drops ranging from a couple of lakh rupees on entry-level models to over Rs 20 lakh on the G-Class. He believes that the reduced GST rate will have a positive impact on the broader economy, increasing consumer spending and affordability. The Mercedes-Benz Hurun India Wealth Report 2025 reveals a significant increase in dollar millionaire households in India, which Iyer attributes to the country’s growth story and the rising aspirations of the young generation.
Despite the positive trends, Iyer cautioned that 2025 may not be the best year for luxury car sales in India, citing mixed quarterly sales and the impact of heavy rainfall on consumer behavior. However, he remains optimistic about the overall economic growth, driven by a 6.3% GDP growth rate. Iyer also discussed the limited direct impact of free trade agreements (FTAs) on Mercedes-Benz India’s sales, as the company produces over 90% of its cars in India, which are already subject to low taxes.
In terms of electric vehicles, Mercedes-Benz was the first luxury carmaker to assemble EVs in India, but it is not the market leader in luxury EV sales. Iyer explained that the focus is on value over volume, with the company localizing top-end models like the EQS sedan and SUV. The G-Wagen, available in India as an electric and petrol variant, is broadening its appeal beyond celebrities and athletes, with some CXOs opting for it over the S-Class.
Overall, Iyer’s conversation highlighted Mercedes-Benz India’s resilience and commitment to excellence, despite the challenges and uncertainties in the market. The company remains focused on delivering high-quality products and experiences, while navigating the complexities of the Indian automotive industry. As the G-Wagen proved its capabilities off-road, Iyer demonstrated his confidence in the brand’s ability to navigate the twists and turns of the market, driven by its guiding philosophy of “The Best or Nothing.”