BENGALURU: The luxury automotive landscape in India is witnessing a significant shift as younger professionals increasingly drive demand, particularly in the tech hub of Bengaluru.
Speaking at the launch of a new Mercedes-Benz facility in the city, Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, highlighted the strategic importance of the region beyond its manufacturing roots.
He noted that while the company maintains its primary plant in Pune’s Chakan, Bengaluru has emerged as a critical pillar for the brand due to its rapid economic expansion and its role as home to a massive research and development centre.
#WATCH | Bengaluru: On the launch of new Mercedes-Benz facility, MD & CEO, Mercedes-Benz India, Santosh Iyer says, “… Bangalore is always a very special city for Mercedes-Benz apart from our plant in Pune’s Chakan. We have a huge R&D centre in Bangalore, as it is growing… pic.twitter.com/0zVxh4DkE6
— ANI (@ANI) January 23, 2026
The demographic profile of luxury car buyers is evolving rapidly, with Bengaluru leading the charge in lowering the average age of ownership. Iyer pointed out that the average age of a Mercedes-Benz buyer in India has dropped from 42 to 38, but the figures in the Karnataka capital are even more striking.
According to Iyer, “About 38 per cent of customers are under 38 years old” in the city. This surge in millennial and Gen-Z buyers suggests a robust accumulation of wealth among the city’s young professional and entrepreneurial class, moving away from the traditional older demographic associated with high-end vehicles.
The expansion of the brand’s footprint in the city is a direct response to Bengaluru’s rising contribution to the national GDP. Iyer emphasised that the city is “growing rapidly in terms of state GDP and wealth, and many Mercedes-Benz cars are sold here.”
By investing in new facilities, the German automaker aims to tap into this localised wealth and provide tailored experiences for a clientele that values both innovation and prestige. Iyer also reinforced the city’s unique position in their portfolio, stating, “Bengaluru is not only buying luxury cars, but young customers in Bengaluru are buying luxury cars.” (ANI)
