By Mercedes-Benz India has achieved a remarkable milestone in the financial year 2023, with its revenue soaring past the Rs 10,000 crore mark. This financial feat is a testament to the brand’s enduring appeal in the Indian luxury car market. The carmaker not only surpassed the Rs 10,000 crore revenue threshold but also saw its profits nearly double, signifying a period of robust growth. In FY2023, Mercedes-Benz India reported sales of 16,497 vehicles, reflecting an impressive 38% increase compared to the previous year.
However, it’s worth noting that these figures still haven’t quite reached the pre-COVID levels witnessed in FY2019 when the company managed to sell 18,211 units. Despite this, the average realization per vehicle exhibited a substantial upswing of 20%, settling at an impressive Rs 62 lakh. Consequently, the overall revenue experienced a striking uptick, surging by 64% to reach Rs 10,450 crore in FY2023. The financial highlight for Mercedes-Benz India doesn’t stop at revenue and sales figures. The company’s net profit witnessed an astounding 91% increase, reaching Rs 884 crore.
Notably, this marks the second consecutive year in which the luxury car manufacturer recorded a double-digit operating profit margin. Their EBITDA margin stood at 13.4%, surpassing the industry giant Maruti Suzuki by 3.54%. One key factor contributing to the surge in profits has been the increased sales of high-end models priced above Rs 1.5 crore (ex-showroom). The market share of these top-end vehicles (TEVs) within the total sales has notably risen from 13% in FY2019 to an impressive 26% in FY2023. Mercedes-Benz India’s financial performance in FY2023 not only underscores the resilience of the luxury car market but also highlights the brand’s ability to adapt and thrive in an ever-evolving automotive landscape. As they continue to set new benchmarks and redefine luxury on Indian roads, the future looks promising for this iconic marque.
