Automotive innovation led by electrification, digitisation, hyper-personalisation: Santosh Iyer

Electrification is becoming a necessity amidst climate change threats, which are real. And I truly believe that there is no luxury without sustainability. OEMs are increasingly introducing new BEVs (Battery Electric Vehicles) in India, not just as greener options, but statements of aspiration to eco-conscious buyers. Today’s young audience feels responsible and wants to stand out; BEVs being the gateway to a greener future. Sustainability is at the core of their universe, and they are willing to make a conscious, sustainable choice. Sustainability is also core to Mercedes-Benz’s future goals, and this dedication resonates deeply with our customers.

Digitisation, on the other hand, is emphasising on creating desirable customer experiences. Software Defined Vehicles (SDVs) promise to redefine customer experience from driving, entertainment to ownership. Essentially SDVs are creating a transformative shift, making static vehicles become dynamic supercomputers on wheels, which can be perennially upgraded and improved. With BEVs, SDVs will continue to refine driving experience, overhaul in-car infotainment, ensure safety and create outstanding UX (User Experience). Together with MB.OS, world-class collaborations and the latest R&D in generative AI, at Mercedes-Benz we are creating a hyper-personalised experience for our customers, bringing higher productivity, convenience and personalisation into the car itself. 

Also read: How India is going electric

Over the years, I’ve noticed younger customers increasingly tend to favour the flexible ownership experience over the usual traditional model. Thanks to smarter finance solutions, younger customers today are driving luxury cars much earlier in their professional career than before.  Post-pandemic, there has been a significant demand for luxury experiences and a drop in the average age of customers. Customers are more focussed than ever on enjoying the finer things in life, as the global upheaval has led many to reassess their priorities. With luxury travel, fine dining, and bespoke luxury experiences becoming more aspirational, young individuals seek to indulge in luxury products and services, reward themselves and elevate their lifestyle. 

Democratisation of information, coupled with soaring aspiration and rise in disposable income has buoyed propensity for luxury consumption among younger demographics. I am glad to see more women and salaried professionals now opt for a luxury marque, celebrating their professional success. Women buyers now comprise 15 percent of our customer base, doubling from earlier years. Thanks to easy access to finance, we also have young salaried professionals increasingly gravitating towards luxury ownership, something unseen before.

This evolving customer profile and their preferences have reshaped our retail business, as we disrupted the traditional retail model with a direct-to-consumer (D2C) sales model in India. At first, we had reservations, shifting completely to a model where dealerships no longer manage the inventory, as that was radical. Yet, our intuition told us customers desired transparency, consistency, and hassle-free experiences that the new model addressed. Our customers validated this intuition spectacularly, as Mercedes-Benz India retailed more than 55,000 cars till date, with major markets like the UK, Germany, Turkey, Malaysia adopting the business model. 

This disruption has simplified the car-buying experience and increased trust significantly between customers and franchise partners—the latter solely focusing on ‘best customer experience’ as the single-most important differentiator in luxury retail. In a country where ecommerce and quick commerce platforms are changing the face of retail and logistics, a direct-to-customer business model makes perfect sense: It removes friction, delights customers, runs profitable businesses.

It’s high time to shift focus from just luxury products to building luxury experiences and luxury CX, that reflect luxury customers’ high-octane lifestyle. After all, curated experiences like a watch-making session with IWC, the experience of flying a Cessna, drifting an AMG over a frozen lake in Arjeplog in Sweden or driving the iconic G-Class to the famous Schöckl in Graz, Austria, are Instagrammable memories customers aspire every single time.     

And just as important, it’s also about making customer service a key part of the luxury journey. An essential part of the ownership experience for BEVs, in specific, remains the ease of the public charging infra that builds customer confidence. The next big disruption in the BEV segment in India will be to create a ‘UPI moment’, where customers can use a singular app for charging the vehicle and pay without any hassle. 

About 140 years ago, two gentlemen challenged the world’s most established way of moving and disrupted, to progress. Today, the challenge is no longer the carriage, but the code. The destination? A future which is not just about speed, style, software or convenience, but about meaning, relevance and connection. 

So, if you happen to visit Germany next, do visit the ‘Mecca of Automobiles’—the Mercedes-Benz Museum in Stuttgart, where the guided tour begins with the ‘horse’ and ends with racing and record-breaking cars, showcasing a stunning range and depth of culture-shaping innovations in the brand’s 140 years of well-storied history; an iconic brand that not only invented the automobile, but keeps reinventing itself, making the ‘most desirable cars’ for dreamers across generations,  age, geographies and cultures.