India First Outside US: Mercedes-Benz GLS Maybach Local Production Starts, Prices Slashed
Overview
Mercedes-Benz India will begin local production of its ultra-luxury GLS Maybach SUV, making India the only country outside the U.S. to assemble the model. This move follows India securing a spot among the top five global markets for Maybach. Localizing production is expected to reduce the price from ₹3.17 crore to ₹2.75 crore, enhancing accessibility for Indian luxury car buyers. The company also plans 12 new product introductions for 2026.
Mercedes-Benz India is set to commence local production of its ultra-luxury GLS Maybach SUV, a move that positions India as the sole country outside the United States to assemble the prestigious model. This significant step underscores India's burgeoning importance in the global luxury automotive market, with the country officially becoming one of the top five markets worldwide for Mercedes-Benz's Maybach range in 2025.
Localization Benefits
The decision to localize the GLS Maybach's assembly in India is expected to bring substantial price benefits to consumers. Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, confirmed that the localized model will retail at ₹2.75 crore, a notable reduction from its current import price of ₹3.17 crore. This price adjustment aims to make the ultra-luxury vehicle more accessible within the Indian market. The company clarified that production of the GLS Maybach would continue in the U.S. plant in Alabama, with Indian assembly catering specifically to local demand.
Market Growth and Strategy
India's elevation into the top five global markets for Maybach, alongside China, the U.S., South Korea, and Germany, signals a strategic pivot for Mercedes-Benz. The company has outlined ambitious plans for 2026, including the introduction of 12 new products. This year, Mercedes-Benz India saw a marginal dip in overall sales to 19,007 units compared to the previous year, a result of prioritizing growth in its top-end and core segments over engaging in price wars for entry-level luxury vehicles. Sales of vehicles priced above ₹1.5 crore surged by 11 percent, now constituting 25 percent of total sales in 2025.
Electrification Push
As part of its broader electrification strategy, Mercedes-Benz India is enhancing its electric vehicle (EV) ecosystem. The company is rolling out 'MB. Charge Public', a service designed to simplify the charging experience for its EV owners. This initiative, already active in 37 countries, will provide access to over 9,000 DC charging points at no extra cost for existing Mercedes-Benz BEV customers. It integrates multiple charging partners, offers real-time availability information, and facilitates seamless payments. EV penetration in the company's overall portfolio is projected at 8-9 percent, with a more significant 20 percent penetration within the high-end segment. Despite single-digit growth expectations for the overall luxury segment in 2026 and rising input costs due to currency fluctuations, Mercedes-Benz remains committed to expanding its presence and offerings in the Indian market.
