After remaining relatively quiet for a couple of years, Mercedes-Benz India has witnessed a surge in sales of diesel powertrains following the Goods and Services Tax (GST) rationalisation. The recent 6% reduction in taxes on both diesel and petrol engines has made diesel options more attractive, taking into account their mileage and overall cost of ownership.
According to Santosh Iyer, MD and CEO of Mercedes-Benz India, this shift has been surprising given that there remains a price difference of Rs 2 to 2.5 lakh between petrol and diesel vehicles. Diesel car sales have increased from 29% to 40% of total sales since the GST rationalisation, Iyer said.
The recovery has been notably strong in the Gujarat market, where customers are increasingly opting for diesel vehicles. Iyer mentioned that while the company has a robust portfolio of diesel cars, it will need some time to meet the rising demand.
Looking ahead, Mercedes-Benz plans to raise prices in 2026, gradually over several quarters, as the company continues to face cost pressures from energy, logistics, and currency fluctuations.
|
