The new CLA is Mercedes-Benz's first software-defined car, and it is targeted for younger, tech-savvy customers entering the luxury space. Despite being a CBU, Mercedes-Benz is targeting a sub-Rs 60 lakh price for India, at par with Europe. NDTV AutoMate talked to Santosh Iyer, MD and CEO, Mercedes-Benz India on the prospects of the new CLA and EV market at large:
NDTV AutoMate: Mercedes-Benz CLA has been making headlines globally since its global debut last. It is now coming to India. What are your expectations? What kind of market are you looking at?
Santosh Iyer: Frankly, this car is quite special for us. We are celebrating 140 years of innovation, and while the S-Class remains the pinnacle for Mercedes-Benz, the CLA represents something very different and very important. We had the world premiere on January 29, and the CLA that debuted in Europe late last year is our first software-defined car.
The level of technology in this car is a benchmark. From the hardware to the collaboration with NVIDIA in terms of computing power, it really defines how the future of mobility will look. In many ways, the CLA EV is not just defining its segment but also the broader automotive industry, especially in how we have packed features and technology into the car.
We also have to recognise that buyer profiles are changing. Gen Z buyers are entering the market, their needs are different from traditional luxury buyers, and this car ticks all those boxes. That's why we're extremely excited about bringing the CLA to India.
NDTV AutoMate: Mercedes-Benz CLA is finally here, but still a few weeks away from launch. Can you share a timeline and also talk a bit about pricing?
Santosh Iyer: Globally, the CLA is in very high demand, especially in Europe, which has led to some delays due to long waiting periods. But the car is finally here in India.
Bookings started on March 10, and deliveries will begin from April this year. In terms of pricing, there has been a lot of discussion. This is a CBU, as we don't currently have a local supply chain to support production in India.
If you look at global pricing, a CLA 250 AMG in Germany costs over 60,000 euros. If you translate that to India with import duties, the price could easily land in the Rs 70-80 lakh range. However, we are taking a very strategic approach for India. We will price the car lower than in Europe.
Our target is to keep the CLA sub-Rs 60 lakh, likely in the Rs 58-60 lakh range, depending on exchange rates. The exact price will be announced in April, but the corridor we are looking at is roughly Rs 50-60 lakh. This pricing is specifically for the Indian market because we want younger buyers to enter the Mercedes-Benz brand and experience a new-age luxury product.
ALSO READ - Mercedes-Benz CLA Electric Review: Attention Magnet
NDTV AutoMate: Your top-end EVs have been doing well, with EVs accounting for about 20 per cent of your top-end sales. However, the EQA saw mixed responses. Do you see the CLA redefining the segment?
Santosh Iyer: The EQA and EQB are both very capable cars, but pricing was a challenge. The EQA was priced at around Rs 62 lakh and the EQB at about Rs 70 lakh, which limited how much the market could absorb.
Also, EV technology is evolving very rapidly. What we are introducing now is next-generation technology. With the CLA, we're also addressing how customers actually use EVs. Our data shows that only about 20% of our top-end customers rely on public charging, but our customers love to travel, so range and charging speed become critical.
The CLA offers a WLTP range of up to 792 km with an 85 kWh battery. We have also introduced MB.Charge, our integrated charging ecosystem, which enables 800-volt charging across India. The system uses AI to guide customers to the right charging location, prepares the battery in advance, and significantly reduces charging time. You can get up to 400 km of range in about 20 minutes.
There are a lot of firsts in this car, and combined with a sub-Rs 60 lakh pricing strategy, it's a very different approach from what we've done earlier.
WHAT ALSO MATTERS - Mercedes-Benz Cars To Get Costlier By 2 Per Cent Starting April 2026
NDTV AutoMate: You're not competing in the sub-Rs 50 lakh EV segment. Is that a conscious decision?
Santosh Iyer: Absolutely. We are not trying to strip features or compromise on what a Mercedes-Benz should be just to chase volumes. A Mercedes-Benz customer wants the latest technology, a beautiful design, and strong residual value.
For us, volume is always an outcome, never the end goal. We want to be appropriately priced, but we don't want to chase numbers in a way that could have a long-term impact on the brand.
NDTV AutoMate: India is one of the few markets where Mercedes-Benz has localised top-end EVs. Could we see localisation at the entry level as well?
Santosh Iyer: Local production is a very different discussion. From a customer's point of view, what really matters is value and pricing, not whether a car is locally produced or imported. As I mentioned earlier, we are pricing the CLA lower than in Germany even without local production.
That said, we are always open to localisation. We were the first luxury brand to localise an EV in India, and we will continue to explore more opportunities. Globally, we have over 40 new products coming, and some of them will definitely make their way to India. The CLA is just the beginning.
NDTV AutoMate: You sold close to 19,000 cars last year. What is the mantra behind Mercedes-Benz India's sustained success over the last few years?
Santosh Iyer: We've been in India for over 30 years, and for most of that time, we've focused on being strategically patient. We do what customers need. Even with the CLA, despite it being a CBU, we've increased ground clearance for Indian conditions and tuned ADAS systems based on Indian inputs.
Another big shift has been our move to a direct-to-customer business model. Keeping the customer at the centre of everything we do is critical. Volume, again, is always an outcome, not the objective.
NDTV AutoMate: Finally, where do you see the luxury car market heading? Do you expect double-digit growth in 2026, and are ticket sizes going up?
Santosh Iyer: Ticket sizes have definitely gone up. Over the last five years, average prices have moved from around Rs 60 lakh to over Rs 1 crore, which is clearly reflected in our balance sheet.
In terms of growth, we achieved double-digit revenue growth last year as well. Demand remains strong, with high inquiry levels and test drives. Conversions tend to happen in spurts, but the intent is very clear.
We've also had to take multiple price increases due to currency depreciation and global factors. Our customers are well-travelled and understand the impact of the euro-rupee exchange rate and geopolitical conditions.
That said, all the fundamental ingredients for growth are in place. New products always excite the market, and we believe the luxury segment will continue to grow strongly.