Mercedes-Benz India zips past ₹10k-crore revenue mark in FY23

The robust financial performance came even as volumes have still to reach the peak of the pre-Covid year of FY19. In FY23, the local arm of the German luxury carmaker sold 16,497 vehicles, a 38% increase from the previous year, but lower than the 18,211 vehicles sold in FY19, according to the company’s filing with the corporate affairs ministry.

Average realisation per vehicle rose by 20% year-on-year to ₹62 lakh while revenue grew 64% to ₹10,450 crore in FY23. This marked a twofold jump in revenue compared to five years ago and it was fuelled primarily by an increase in average realisation. Net profit expanded by 91% to ₹884 crore in FY23.

A spokesperson for Mercedes-Benz India declined to comment on the financials.

“Global carmakers have always rued about the low average selling prices in India and its contribution in dragging down the overall ASP. That seems to be changing at a fast pace, with the buyers choosing higher -end models. The ASP in India is fast catching up with the global average. This is very positive for the Indian market and will prompt global car makers to commit more investments here,” said Puneet Gupta director, S&P Global Mobility.Mercedes’ operating profit margin stayed in double digits for the second year in a row. Ebitda margin stood at 13.4% in FY23, about 3.54 percentage points higher than Maruti Suzuki, India’s largest carmaker, in the same period.Mercedes has been gaining from a steady increase in the share of top-end vehicles (TEVs) in its portfolio over the last four years. Share of TEVs in total sales doubled to 26% in FY23 from 13% in FY19. TEVs include models such as the GLS, S-Class, S-Class Maybach, GLS Maybach, AMGs and EQS.

Luxury carmakers such as Mercedes, BMW, Audi and JLR are reaping the benefits of increasing wealth among India’s rich. After a blip in 2022, “The number of ultra-high-net-worth individuals with net worth over $30 million is estimated to rise by 58% in the next five years from 12,069 in 2022 to 19,119 individuals in 2027,” Knight Frank said in The Wealth Report 2023 in May.