Mumbai: Mercedes-Benz India is preparing to expand its plug-in hybrid portfolio as a large section of luxury car buyers continues to prefer conventional powertrains despite growing adoption of electric vehicles (EVs).
The company on Monday indicated that it may introduce plug-in hybrid electric vehicle (PHEV) technology in more models depending on customer demand and is also evaluating local assembly plans for the newly launched S-Class plug-in hybrid, Business Standard reported.
Mercedes-Benz introduced the S 450e in India at an ex-showroom price of Rs 2.20 crore, marking the company’s first plug-in hybrid electric vehicle in the country.
The luxury sedan combines a 3.0-litre six-cylinder petrol engine with an electric motor to deliver a combined output of 435 horsepower and 680 Nm of torque, while offering a claimed electric-only driving range of around 115 kilometres.
The launch reflects Mercedes-Benz’s attempt to address concerns among luxury buyers who remain reluctant to fully transition to battery-electric vehicles due to charging infrastructure, range limitations and ownership considerations.
Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India, said electric vehicle adoption has strengthened in segments where the company already offers EV options, but conventional powertrains continue to dominate customer preference.
According to Iyer, EV penetration has reached around 20 per cent in those segments, while nearly 80 per cent of buyers continue to choose conventional vehicle options.
He said customer feedback suggests concerns around charging availability, driving range and overall EV ownership experience remain key considerations.
Describing plug-in hybrids as a transitional solution, Iyer said the technology combines electric driving capability with the flexibility of an internal combustion engine.
“It offers the best of both worlds. It behaves like an electric car, while the combustion engine mitigates any range anxiety,” he said.
Mercedes currently sells petrol, diesel and battery-electric vehicles in India and follows what it describes as a powertrain-neutral approach, allowing customer demand to guide the pace of technology adoption.
When asked whether plug-in hybrid technology could expand beyond the S-Class, Iyer said the company already has multiple options available globally and future launches would depend on market response.
Globally, Mercedes-Benz offers plug-in hybrid variants across several models including the C-Class, E-Class, GLC, GLE, S-Class and selected Mercedes-AMG performance vehicles.
The company said plug-in hybrids have gained popularity in Europe, where buyers increasingly view them as a practical option between conventional vehicles and fully electric models.
Mercedes reported that global plug-in hybrid sales increased by 9 per cent in 2025, helping balance softer demand in the battery-electric segment.
Industry data from the European Automobile Manufacturers’ Association (ACEA) also showed that hybrid vehicles accounted for 34.5 per cent of new vehicle registrations in the European Union in 2025, making hybrids the largest powertrain category.
At the same time, Mercedes said demand for electric vehicles remains strong in India.
According to Iyer, the company is approaching double-digit EV penetration across its overall portfolio, supported by the launch of the all-electric CLA in the entry luxury category.
He said EV sales recorded double-digit growth during the first six months of calendar year 2026 compared with the previous year.
Iyer added that customer demand remains robust, with the CLA sold out for the next three to four months and the EQS SUV also fully allocated for the next two to three months.
On plans to localise production of the S-Class plug-in hybrid, the company said discussions are still ongoing and no final decision has been taken.
According to Mercedes, the new S-Class includes more than 2,700 new or updated components and becomes the first S-Class in India to feature a plug-in hybrid powertrain.
