Mercedes-Benz Expands Indian Manufacturing with GLS Maybach Production
Mercedes-Benz is significantly boosting its manufacturing operations in India. The company plans to produce three new vehicles locally. This strategic move aims to counter the effects of a weakening rupee.
India to Become Exclusive GLS Maybach Production Hub
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, revealed this information in an interview. He confirmed that India will manufacture the prestigious GLS Maybach. This makes India the only country outside the United States to produce this luxury vehicle.
The company will also produce an electric vehicle variant and another combustion engine model in India. This expansion demonstrates Mercedes-Benz's strong commitment to the Indian market.
Substantial Price Reduction for Indian Customers
Local manufacturing brings a major benefit for Indian customers. The price of the GLS Maybach will drop by approximately Rs 40 lakh. This reduction brings the vehicle's price close to Rs 2.75 crore.
Currently, importing the GLS Maybach attracts a hefty 110% customs duty. Local production will slash this duty to around 20%. This change directly contributes to the significant price decrease.
Focus on Localization and Market Performance
Iyer declined to specify the exact investment required for localization at the Chakan plant in Pune. However, the company clearly emphasizes increasing local content in its vehicles.
Mercedes-Benz India reported strong sales figures for 2025. The company sold 19,007 vehicles during that year. Notably, top-end luxury models contributed 25% of these total sales.
This manufacturing expansion positions India as a crucial production base for Mercedes-Benz. It reflects the growing importance of the Indian luxury car market globally.
