Despite the fact that other luxury carmakers’ Indian subsidiaries, such as Audi and Volvo, are discontinuing diesel-powered models, Mercedes-Benz India has opted to continue producing diesel vehicles. A senior corporate official told Moneycontrol that diesel-powered cars with the three-pointed star would continue to be sold as long as market conditions are favorable.
“We will continue to market diesel engines for the foreseeable future, leaving the decision to the client. We can be flexible in our manufacturing, as seen by the debut of petrol and diesel models (of the facelifted GLS). We offer diesel across the range, from A Class to S Class GLS. We will continue to use diesel since it is a popular option among customers,” said Lance Bennett, vice president of sales and marketing at Mercedes-Benz India.
Diesel-powered vehicles have been phased out by major automakers worldwide because they are deemed dirty, difficult to operate and maintain, and more expensive than gasoline vehicles. In India, carmakers like Maruti Suzuki and Honda Cars India have already departed this category in recent years.
Bennett said that diesel automobiles account for 55 percent of the company’s overall sales. “We will leave it up to the customer, we can adjust our product portfolio or production accordingly,” he went on to say.
“Because luxury clients have large budgets, the expense of updating the diesel engine with sophisticated technology has little influence on them. As a result, premium carmakers such as Mercedes-Benz and BMW may continue to use diesel engines as long as they fulfill severe pollution standards, according to Gaurav Vangaal, associate director, light vehicle production forecast, Indian subcontinent, S&P Global Mobility.
Mercedes-Benz India intends to spend 200 crores in its Chakan facility near Pune by 2024 to increase manufacturing capacity. This year, the corporation plans to spend a total of Rs 3,000 crore in India.
Mercedes-Benz India also intends to launch over a dozen new vehicles, including three electrified versions. More than half of the new models will be premium vehicles.
Mercedes-Benz India expects a double-digit increase in sales this year, after its record-breaking performance in 2023. Mercedes-Benz’s major target audiences are middle-aged upper-class individuals and young people.
According to Lance Bennett, Vice President of Sales and Marketing at Mercedes-Benz India, the firm plans to debut more than 12 models in 2024, with more than half of them being high-end cars and three being electric vehicles (EVs).
