Mercedes-Benz India sees growing potential for plug-in hybrid electric vehicles (PHEVs) in the luxury car segment, with buyers potentially willing to pay 5–6% more than for comparable electric or conventional engine cars.
Mercedes-Benz India Managing Director and CEO Santosh Iyer said plug-in hybrids offer a balance between electric mobility and the convenience of a combustion engine. The technology could address concerns around charging infrastructure and range anxiety while allowing drivers to use electric power for everyday journeys.
According to Iyer, customers in the luxury segment may be willing to pay the additional cost for greater flexibility, convenience and potentially better resale value than fully electric vehicles.
Plug-in Hybrids Offer Two Powertrain Options
Plug-in hybrid vehicles combine a rechargeable battery and electric motor with a conventional combustion engine. Drivers can use electric power for shorter trips and switch to the combustion engine when charging is unavailable or for longer journeys.
Iyer cited the Mercedes-Maybach S-Class plug-in hybrid, which offers an electric driving range of around 100 km, as an example of the technology’s potential for daily commuting. Mercedes-Benz has also introduced the E53 AMG plug-in hybrid in India, with deliveries already underway. Deliveries of the S-Class and Mercedes-Maybach S-Class plug-in hybrid models are expected to begin by the end of October 2026.
Mercedes-Benz Expands Its Electrification Strategy
The German luxury carmaker plans to offer multiple powertrain options as the market moves towards electric mobility. Its strategy includes petrol and diesel vehicles, fully electric models and plug-in hybrids.
Mercedes-Benz India reported that its electric vehicle portfolio grew 16% between January and September 2026. Electric vehicles accounted for around 8–9% of the company’s sales during the period.
The company’s approach reflects an effort to offer customers different options as charging infrastructure, driving requirements and preferences continue to shape the transition to electric mobility.
