Mercedes-Benz Expands Andhra Pradesh Footprint with New Luxury Showroom in Visakhapatnam

German luxury carmaker Mercedes-Benz India has strengthened its retail presence in Andhra Pradesh with the inauguration of a new state-of-the-art luxury showroom in Visakhapatnam in partnership with long-standing franchise partner Silver Star. The company also showcased the all-new CLA BEV during the inauguration, underlining its growing focus on electric mobility in emerging luxury markets.

Located strategically on the Chennai–Kolkata Highway at the Visakhapatnam Marriott by Fairfield, the new 1S luxury dealership aims to provide enhanced accessibility and a premium customer experience for buyers in the coastal city.

Mercedes-Benz Bets Big on Emerging Luxury Markets

The inauguration reflects Mercedes-Benz India’s broader strategy of deepening its presence across emerging high-potential markets while simultaneously strengthening operations in major metropolitan cities.

Speaking at the inauguration, Brendon Sissing said:

“Mercedes-Benz continues to deepen its presence across emerging markets in India, bringing world-class products and retail experiences closer to our customers. Visakhapatnam is an important emerging market for us, catering to the growing base of discerning customers.”

The company confirmed plans to add over 20 new MAR20X luxury retail outlets across India during 2026. These facilities will be developed in both emerging and metro markets, including Bengaluru, Mumbai and Delhi NCR, supported by an investment of ₹200 crore by franchise partners over the next two years.

New Showroom Designed Around Luxury Customer Experience

The newly inaugurated Visakhapatnam showroom spans approximately 2,300 sq. ft. and has been developed in line with Mercedes-Benz’s global Corporate Identity standards.

Key highlights of the facility include:

• Dedicated customer interaction and consultation areas

• Immersive digital product experience zones

• Premium hospitality-focused ambience

• One dedicated vehicle delivery bay

• Team of 15 trained professionals

• Faster completion timeline of just three months

The showroom is Mercedes-Benz’s first luxury 1S facility in Visakhapatnam and complements the brand’s existing service operations in the city.

According to Amith Reddy:

“The facility has been designed to deliver a seamless and elevated customer journey with personalised consultations, immersive product experiences and premium hospitality.”

CLA BEV Showcased in Visakhapatnam

Mercedes-Benz also unveiled the all-new CLA BEV during the inauguration event, highlighting the brand’s growing electric vehicle ambitions in India.

The CLA BEV is positioned as one of Mercedes-Benz’s most advanced and intelligent electric vehicles globally and represents the company’s next-generation luxury EV strategy.

Mercedes-Benz Continues Retail Expansion in India

Mercedes-Benz India currently has over 140 luxury touchpoints spread across more than 50 cities, making it the largest luxury automotive retail network in the country.

The company has been aggressively investing in:

• Luxury retail infrastructure

• Electric vehicle portfolio expansion

• AI and automation-led retail solutions

• Customer-centric direct-to-customer business models

With emerging cities like Visakhapatnam witnessing rising demand for premium mobility solutions, luxury brands are increasingly focusing on tier-2 and coastal markets to drive future growth.

AutoPunditz Take

Mercedes-Benz’s expansion in Visakhapatnam signals the increasing importance of emerging luxury markets beyond traditional metros. Andhra Pradesh has steadily evolved into a promising premium automobile market, supported by rising affluence, infrastructure growth and aspirational buyers.

The introduction of a modern MAR20X retail format along with the showcase of the CLA BEV also highlights how luxury carmakers are combining digital retail experiences with electrification to strengthen customer engagement in India’s evolving automotive landscape.