Mercedes-Benz India sees luxury buyers paying 5-6% more for plug-in hybrids

Mercedes-Benz India is optimistic about the demand for plug-in hybrid vehicles in the luxury segment. CEO Santosh Iyer noted the appeal for customers due to the convenience and flexibility of these vehicles. The company plans to expand its plug-in hybrid offerings, with new models like the Maybach S-Class. Deliveries are expected to begin for these models by the end of October.

New Delhi: Mercedes-Benz India sees potential for plug-in hybrid vehicles in the luxury segment, as consumers are willing to pay a premium over pure electric or conventional ICE models for electric driving range, combustion engine flexibility, and better resale value than fully electric vehicles, a top executive said.

In an interview with PTI, Mercedes-Benz India CEO Santosh Iyer said plug-in hybrids could address some concerns associated with electric vehicles, including charging infrastructure and range anxiety.

"I think it is a good interim technology for the customer because today, each powertrain has its pros and cons," Iyer said.

"When you look at a plug-in hybrid, it balances both worlds. You get, like in the S-Class hybrid Maybach, a 100 kilometers EV range for everyday driving to your office and back. In case you are not able to charge the car, you can drive it in combustion engine mode."

Iyer said plug-in hybrids are priced 5-6 per cent higher than electric or conventional engine cars, but customers in the luxury segment could be willing to pay the premium for the convenience and flexibility they offer.

"The flip side...is 5 to 6 per cent more expensive compared to EVs or combustion engine cars. But that is a trade-off which this segment of customers would love to do because it gives them peace of mind, it gives them better residual value, and they can enjoy an electric without some of the negative challenges of electric that they see around them," he added.

The German luxury carmaker is expanding its plug-in hybrid portfolio in India, with the technology making its debut in the Mercedes Maybach S-Class. It has also introduced the E53 AMG plug-in hybrid, deliveries of which have begun.

Deliveries of the S-Class and Mercedes-Maybach S-Class plug-in hybrids are expected to begin by the end of October.

"...we want to offer multiple powertrains. We are introducing the plug-in hybrid in S plus Maybach. For the first time, Maybach gets a plug-in powertrain in India," he said.

"We would be agnostic. I keep saying...the end goal is an EV, but the part towards EV should have multiple powertrains, which includes not only petrol and diesel, but also plug-in hybrids," he added.

Mercedes-Benz India said its electric vehicle portfolio grew 16 per cent during January-September 2026, with EV penetration around 8-9 per cent.