Mercedes-Benz India is increasing its focus on artificial intelligence, customer data and experiential marketing as it looks to engage a younger and increasingly fragmented luxury consumer base, while maintaining its strategy of prioritising value over sales volumes.
The luxury automaker is using AI and customer data to support personalisation and dealer-level marketing, alongside increasing investments in digital channels. The strategy comes as affluent consumers spread their attention across platforms, making it more difficult for traditional advertising alone to deliver concentrated reach.
Brendon Sissing, Vice President, Sales and Marketing at Mercedes-Benz India, said the company is working towards greater micro-segmentation while making customer interactions more intuitive. The approach combines digital capabilities with personal engagement rather than moving the customer journey entirely online.
Mercedes-Benz is also treating vehicle launches as the beginning of a longer engagement cycle. Campaigns are extended through regional screenings, dealer events and customer activations designed to maintain engagement after the initial launch period.
Experiential marketing forms another part of the strategy. The company uses AMG driving experiences, G-Drive expeditions, golf events and access to Formula One races and Mercedes-Benz manufacturing facilities to engage customers beyond conventional advertising.
Mercedes-Benz India has also partnered with the Nita Mukesh Ambani Cultural Centre to provide access to Broadway productions, art exhibitions and other cultural experiences. Its collaboration with the Museum of Solutions includes the “Vroom” exhibit focused on automotive history.
The marketing shift is taking place alongside changes in Mercedes-Benz India’s sales mix. The company recorded retail sales of 19,007 units in 2025, down 2.85 per cent, while reporting its highest-ever annual revenue.
Entry-level luxury vehicles accounted for 13 per cent of total sales after volumes in the category declined 20 per cent. The core portfolio contributed 62 per cent, while top-end luxury vehicles represented 25 per cent. Sales of models priced above Rs 1.25 crore increased 11 per cent, while Mercedes-AMG deliveries grew 34 per cent.
The numbers support the automaker’s stated focus on value over volume, with Mercedes-Benz continuing to emphasise higher-end products and premium positioning rather than pursuing sales growth across every price segment.
At the same time, the profile of India’s luxury buyer is changing. Mercedes-Benz is seeing younger, technology-oriented consumers entering the category, with the CLA emerging as an acquisition model. Demand is particularly strong across Mumbai, Delhi and Bengaluru.
To reach these consumers, the company is allocating a larger share of its marketing spending to digital channels. It is also evaluating emerging media formats, including Connected TV, although it remains cautious about whether the channel currently delivers the right value for the brand.
Its content strategy is evolving as well. Mercedes-Benz is producing shorter digital formats, collaborating with creators and bringing younger talent into its marketing organisation as consumption patterns shift.
The company is simultaneously using AI and data to make customer communication more targeted, particularly through micro-segmentation and dealer marketing. The approach reflects a wider move among premium brands towards using technology to personalise interactions without removing the human element associated with luxury service.
As competition in India’s luxury automotive market expands, Mercedes-Benz is positioning AI, digital engagement and exclusive experiences as complementary parts of its customer strategy, while continuing to emphasise craftsmanship and exclusivity across its premium portfolio.