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Mercedes-Benz Cars division reported an adjusted Return on Sales (RoS) of 4.8% in Q3 2025, meeting its guidance range despite lower volumes and market challenges. This RoS was driven by a 10% growth in Top-End vehicles (Maybach, AMG, S-Class, G-Class). For luxury buyers, this signals the brand’s successful “value over volume” strategy, promising stronger investment in bespoke programs, better resale value potential, and enhanced exclusivity in the premium-car segment.

 

Why Mercedes’ Margin Growth Matters

When a luxury carmaker like Mercedes-Benz reports resilient profitability metrics, it matters significantly for buyers and owners of high-end vehicles. Here’s why:

• Higher margins often translate into more investment in cutting-edge R&D, bespoke options (like MANUFAKTUR), and advanced service experiences.
• Premium-model growth reinforces the brand’s strategic shift of “value over volume” – meaning a stronger focus on the Top-End luxury models that discerning buyers typically prefer.
• In markets such as India, this focus can mean better exclusivity, an expanded customisation portfolio, stronger resale value retention, and a continued strategy of fewer deep discounts on their premium line-up.

 

Key Data & Insights (Q3 2025)

Metric	Verified Value	Why It Matters
Adjusted Return on Sales (RoS) (Cars division)	4.8% in Q3 2025 (compared to 4.7% in Q3 2024)	This is within the company’s full-year guidance (4-6%) and shows resilience despite market contraction.
RoS Guidance Range (Full Year)	4% to 6%	Mercedes is successfully managing profitability in a challenging environment.
Top-End Models Sales Growth	Plus 10% Year-over-Year (for Maybach, AMG, S-Class, G-Class)	Crucial indicator – growth is led by the highest-margin, most exclusive models, validating the “value over volume” strategy.
Free Cash Flow (Industrial Business)	€1.4 billion	Suggests healthy liquidity, which enables sustained investment in new platforms (like the electric CLA) and product quality.
Total Car Sales Volume	-12% Year-over-Year	The RoS improvement (4.7% to 4.8%) despite a volume drop highlights the success of premium pricing and mix-management.

What This Means for Luxury Car Buyers in India

1. Stronger Product Lifecycle & Bespoke Options
   With its profit target secured, Mercedes-Benz is better positioned to invest heavily in next-gen models and its MANUFAKTUR bespoke program. For Indian buyers of luxury Mercedes models, your brand choice is backed by a financially healthy company focused on premiumisation and personalisation.
2. Focus on High-End Models & Exclusivity
   The verifiable growth in brands like Maybach, AMG, and the G-Class means a greater emphasis on Top-End models and a continued avoidance of the ‘discount race’ in the premium luxury segment. Buying one of these high-end variants aligns directly with the brand’s global strategic priority.
3. Resale Value Potential
   A brand demonstrating strong, resilient profitability and clear premium-segment strength typically retains better resale value. For luxury-car buyers, this matters significantly: the cost of ownership is determined not just by the initial price but by the car’s ability to hold value later in its lifecycle.
4. Global Headwinds = Local Impacts
   Mercedes-Benz still faces significant global challenges, including a steep decline in China sales (-27% in Q3 2025), persistent U.S. import tariffs, and the high-cost EV transition pressure. For Indian buyers, this underscores the need to ensure your purchase is a model with strong local assembly/support, stable parts supply, and high regional relevance.

 

Strategic Considerations Before Your Purchase

• Check Model Cycle & Updates: Given the focus on new product launches (like the electric CLA and GLC), ensure your chosen variant is aligned with the brand’s latest investment and refresh plans.
• Review Bespoke/Customisation Options: The premium margin buffer allows Mercedes to offer more personalized features. Check the MANUFAKTUR options available for your model in the Indian market.
• Evaluate Long-Term Servicing & Parts Cost: While the brand is profitable, global headwinds can still affect imported models. Ensure clarity on local support, parts availability, and the total cost of ownership.
• Watch Variant Positioning: The sustained strong margins for AMG/Maybach confirm them as strategic segments. If you are buying a standard luxury line model, ensure it still receives the priority needed for strong long-term support.

 

Final Takeaway

For buyers of high-end luxury cars, the latest Q3 2025 results from Mercedes-Benz are a positive sign. The brand’s margin improvement, successfully driven by premium-segment growth, underpins a healthier investment environment, a stronger product focus, and an improved ownership proposition. That said, vigilance is still required: the luxury automotive world is undergoing rapid change (EV shift, global trade headwinds), and so your purchase decisions should factor in brand sustainability, local support, and long-term value.

Connect with the Motozite Team to assess which Mercedes-Benz premium model best aligns with your luxury-car goals, ownership horizon, and regional market dynamics.

Starting October 31, 2024, the Indian government mandates KYV (Know Your Vehicle) verification for all FASTag users to enforce the ‘One Vehicle, One FASTag’ rule. While the deadline remains, the process has recently been simplified to enhance user experience. Failure to complete KYV may still lead to tag deactivation critical concern for luxury car owners who expect seamless, premium toll passage on national highways.

 

Why KYV Matters – Especially for Luxury Car Owners

For owners of premium and luxury vehicles, the KYV mandate has unique implications that go beyond basic compliance:

• Premium Ownership Experience: High-end vehicles frequently travel on tolled national highways and luxury expressways where uninterrupted tolling is an essential part of the ownership experience. A deactivated tag means delays, mandatory cash lanes, and a loss of exclusivity.
• Preventing Misuse: The rule was introduced to eliminate misuse, such as tags meant for smaller cars being used on heavier vehicles (like trucks) to pay lower tolls, causing revenue leakage. KYV helps protect the integrity of vehicle-category-based tolls, ensuring fair use for the premium segment.
• Preparation for MLFF: The rule strengthens the digital toll ecosystem as India moves toward Multi-Lane Free-Flow (MLFF) tolling, where vehicles pass gantries without stopping. Accurate vehicle-tag linkage is vital for this futuristic system.

 

What is KYV – Key Facts at a Glance (Fact-Checked & Updated)

Feature	Description
Full Form	Know Your Vehicle (KYV) – A verification process linking the FASTag to the actual, registered vehicle.
Mandatory From	October 31, 2024 (The deadline set by authorities for mandatory compliance).
Purpose	To enforce the ‘One Vehicle, One FASTag’ rule and prevent misuse/fraud (e.g., wrong vehicle class tags being used).
Verification Cycle	Verification must be updated every 3 years to keep the database current.
Simplified Process (Latest Update)	Required Documents: Registration Certificate (RC) copy and a clear front-facing image of the vehicle showing the number plate and the FASTag sticker. Side photographs are no longer required for cars/jeeps/vans.
Penalty for Non-compliance	FASTag may be deactivated (hotlisted), forcing the vehicle to use cash lanes, potentially pay higher tolls, and causing significant delays. Note: Issuing banks are now directed to provide sufficient opportunities and reminders before deactivation.

 

Implications for Luxury Vehicle Ownership

1. Seamless Highway Travel: Non-completion of KYV can lead to unexpected tag deactivation and delays-directly undermining the premium, hassle-free ownership experience luxury car buyers expect.
2. Fleet or Multiple-Vehicle Ownership: Owners of multiple high-end cars must verify each vehicle individually. The ‘One Tag = One Vehicle’ rule is strictly applied to ensure compliance and avoid deactivation of any vehicle’s tag.
3. Resale / Transfer / Imported Luxury Cars: When a high-end car is sold or ownership is transferred, KYV must be redone/updated as the details change. For imported or custom luxury cars, ensuring initial compliance is crucial as their unique vehicle specs might require careful document submission.

 

How Luxury Car Owners Should Prepare – Practical Checklist

• Check Your FASTag’s Status: Log in to your issuing bank’s portal or app to verify if the tag is officially “Verified” or pending KYV/Re-KYV.
• Gather Documents: Secure the digital copies of your Registration Certificate (RC).
• Prepare Vehicle Image: Take a clear, high-resolution front photograph of your luxury vehicle, ensuring the number plate and the FASTag sticker on the windshield are clearly visible.
• Complete Upload Early: Do not wait until the deadline or the day of travel. Complete the verification process well in advance to accommodate the typical 3-7 working days for bank verification.
• Coordinate Multi-Car Management: If you own multiple luxury vehicles or use a service house/chauffeur, coordinate the KYV process with them to ensure every tag is individually and correctly linked.

 

Potential Challenges & What to Keep in Mind

• Upload Glitches & Delays: Despite the simplified process, users can still face app errors or backend delays during the upload and verification process. Use the National Highway Helpline Number 1033 for KYV-related issues with your issuer bank.
• Automatic Data Fetching: The process now has a provision to automatically fetch RC details from the Vahan database upon entering the vehicle/chassis/mobile number, which significantly simplifies manual data entry.
• Existing Tags Remain Active: FASTags issued before the KYV policy will remain active unless specific complaints are received for loose tags or misuse. However, proactive compliance is always the safest course of action.

 

Final Takeaway – What Luxury Owners Should Remember

For luxury car owners in India who value a seamless, premium, and reliable drive, the KYV mandate is not merely a compliance burden-it is a necessary safeguard. By proactively ensuring your high-end vehicle’s FASTag is properly linked and verified, you protect your travel convenience, ensure compliance, and maintain the premium ownership experience you expect.

For luxury-car buyers in India, the choice of transmission is the silent partner to the engine. This critical decision directly impacts refinement, driving dynamics, long-term maintenance costs, and residual value. This comprehensive guide walks you through major luxury transmission types-advanced Torque-Converter ATs (like the ZF 8-speed), Performance-focused DCTs, and Hybrid CVTs-to help discerning premium buyers choose the best gearbox for their driving style and ownership needs.

 

Why Transmission Choice Matters in the Luxury Segment

When you’re investing in a luxury car, you are buying a holistic experience centered on seamless refinement, high performance, and rapid responsiveness. The transmission, often called the gearbox, is the most critical link between the engine and the road.

1. Performance Delivery: It influences how instantaneously the car reacts when you need rapid acceleration for an open highway overtake.
2. City Comfort: It determines how smoothly the car crawls through heavy city traffic, a non-negotiable factor for chauffeur-driven use and urban commutes.
3. Ownership Cost: It significantly affects long-term reliability, service cost (especially in the harsh conditions of Indian traffic), and, ultimately, resale value.

Therefore, understanding modern transmission technology is key for every discerning luxury buyer.

 

Major Transmission Types Explained

Here is a breakdown of the four major transmission architectures and their relevance in the current luxury market:

Transmission Type	How It Works	Typical Use in Luxury Cars	Key Strengths	Key Drawbacks
Torque-Converter Automatic (AT)	Traditional automatics use a fluid coupling (torque converter) and planetary gearsets (e.g., the globally renowned ZF 8-speed unit).	The gold standard, common in premium sedans & SUVs (BMW, Mercedes, Audi), where smoothness and refinement are prioritized.	Unmatched smoothness, excellent reliability, familiar service networks, and handles high torque well.	Slightly higher manufacturing cost; may offer a fractionally slower shift than a DCT under aggressive driving.
Dual-Clutch Transmission (DCT/DSG)	Uses two independent clutches (one for odd gears, one for even), enabling lightning-fast, pre-selected shifts.	Found exclusively in performance-luxury vehicles (e.g., Porsche, high-end AMG/M variants, performance coupes) where quick shifts are paramount.	Extremely responsive, provides a visceral, sporty feel, and minimizes power interruption during shifts.	More complex, higher maintenance cost; in stop-go traffic, low-speed shifts can sometimes feel jerky or less smooth than an AT.
Continuously Variable Transmission (CVT)	Uses pulleys and a belt/chain to provide an infinitely variable gear ratio, keeping the engine at its optimal RPM.	Almost exclusively used in Luxury Hybrids (e.g., Lexus, certain hybrid crossovers) where engine efficiency and blending electric/petrol power is crucial.	Extremely smooth power delivery, highly efficient in everyday driving.	Lacks a true “geared feel” (the “rubber-band effect”); not suited for high-performance or enthusiast luxury driving.
Automated Manual Transmission (AMT)	A conventional manual gearbox with an electronic actuator that performs clutch and gear selection automatically is cheaper to implement.	Rarely, if ever, used in true luxury vehicles. Confined to entry-premium or mass-market models only.	Lower initial cost, decent fuel efficiency.	Significant compromise on luxury experience; shift quality is unrefined, often slow, jerky, and unsuitable for the premium segment.

 

What Luxury-Car Buyers in India Should Prioritise

When matching technology to the challenging Indian driving environment, keep these factors in mind:

1. Refinement & Comfort (The Chauffeur Factor)

For those who are frequently chauffeur-driven or navigate heavy urban traffic, the transmission must be whisper-smooth and delay-free. Torque-Converter ATs (like the ZF 8-speed) are unmatched here, as the fluid coupling mitigates initial pull-away jerkiness perfectly.

2. Reliability & Service Support

Luxury ownership demands long-term peace of mind. While DCTs offer great performance, their complexity means higher service costs and potential reliability questions, especially if the vehicle is frequently stuck in heat-generating bumper-to-bumper traffic (which wears the clutch packs). The well-established AT offers the most reliable, long-term, and widely serviceable solution.

3. Residual Value & Technology Future-Proofing

The automotive world is moving toward electrification.

• Pure EVs use simple, single-speed transmissions.
• Performance Hybrids often use DCTs.
• Comfort Hybrids (especially Toyota/Lexus) rely on planetary gearset systems that behave like CVTs. Understanding this alignment ensures your luxury purchase remains technologically relevant for the resale market.

 

Choosing the Right Transmission for Your Luxury Car

For a luxury buyer, here’s a simple, actionable guide based on usage:

Usage Profile	Recommended Transmission	Why?
City-Centric & Chauffeur Driven	Torque-Converter Automatic (AT)	Superior low-speed refinement, reliability in traffic, and unmatched comfort.
Balanced Use (City + Highway)	High-Quality AT or Advanced DCT	Choose a high-quality AT for balance, or a specific DCT variant known for good low-speed behaviour, depending on the drive style.
Performance-Oriented Luxury	Dual-Clutch Transmission (DCT)	Fastest shifts, maximum driver involvement, and manual-feel engagement are essential for a sporty experience.
Efficiency-Focused Luxury (Hybrid)	CVT/Dedicated Hybrid Transmission	Necessary to seamlessly blend power from the electric motor and combustion engine for optimum fuel economy.

 

Summary & Takeaway

The transmission in a luxury car influences far more than just gear shifts-it directly impacts your daily driving comfort, long-term ownership security, and the sheer joy you derive when you demand peak performance.

For Luxury Car Buyers in India:

1. Test Drive Critically: Test drive the car in the modes you’ll use most (specifically, slow-moving urban commute) and evaluate the crucial shift smoothness, response, and overall refinement.
2. Ask About the Technology: Do not choose purely based on the brand badge-find out which specific gearbox unit is used (e.g., ZF 8-speed, or a specific DCT model), its local reputation, and how it behaves in traffic and on steep inclines.
3. Avoid Compromise: For true luxury, reject AMT/iMT systems, as they fundamentally compromise the core refinement promise of a premium vehicle.

 

Final Thought

When you invest in luxury, every component should be premium. The transmission-the sophisticated bridge between engine power and the road-deserves the same scrutiny you give to engine specs, interior quality, and brand prestige.

Connect with the Motozite Team to match the right transmission type to your luxury car purchase, driving style, and Indian ownership conditions.

The Lexus LS flagship is ditching its traditional sedan form. Unveiled at the 2025 Japan Mobility Show, the LS now stands for “Luxury Space,” debuting as a radical six-wheeled MPV Concept and a sleek Coupe–SUV Concept. This shift targets premium buyers seeking versatility, electric readiness, and ultimate sanctuary, fundamentally redefining the future of Lexus luxury mobility, particularly for the evolving Indian market.

 

A Flagship Redefined: From ‘Luxury Sedan’ to ‘Luxury Space’

For more than three decades, the Lexus LS was synonymous with “Luxury Sedan” — quiet refinement, timeless elegance, and executive chauffeur comfort. However, the demands of the modern premium buyer and global mobility trends are rapidly evolving.

Confirming this seismic shift, Lexus Chief Branding Officer Simon Humphries announced that the LS nameplate will henceforth stand for “Luxury Space.” This marks a strategic pivot away from the conventional saloon toward vehicles designed around expansive interior volume, versatility, and advanced, likely all-electric, packaging.

Unlike the low-slung sedans of the past, the new LS concepts prioritize space, futuristic architecture, and bespoke comfort-catering to premium owners who seek not just a drive, but a purpose-designed sanctuary on wheels.

 

The Concepts: What Lexus Showed at JMS 2025

Lexus unveiled two key concepts that showcase this “Luxury Space” ethos:

Concept	Body Style & Key Details	Why It Matters for Luxury Buyers
LS Concept (Luxury MPV)	Unconventional six-wheel architecture with three axles; enormous, flat-floored three-row interior; sliding rear doors; panoramic glass roof. The six-wheel layout is explicitly designed to maximize cabin floor space and privacy.	Designed for ultimate chauffeured luxury, multi-occupant VIP travel, and offering a sanctuary that blends ultimate space and exclusivity.
LS Coupe Concept (Coupe-SUV)	Fastback / SUV hybrid form with bold LED lighting (forming a Sigma-shape), a yoke-style steering wheel, layered digital screens, and rear-hinged coach doors (often called “suicide doors”).	Marries high driving engagement and a sporty aesthetic with luxury utility; this appeals to premium buyers who seek duality-driver-focused performance balanced with passenger comfort.

 

Why This Strategic Shift Matters in India

The redefinition of the LS is particularly relevant to the burgeoning premium segment in India:

• Changing Buyer Preferences: The luxury audience in India is rapidly shifting from rigid sedan confines to vehicles offering lounge-style cabins, reclining seats, and VIP-style travel (a trend exemplified by the popularity of the Lexus LM). The new LS family directly addresses this macro trend for greater flexibility and utility.
• Electric Mobility & Packaging Freedom: Both LS concepts heavily imply full-electric underpinnings (BEV architecture), evidenced by their flat floors, absence of a traditional bonnet, and closed-off fascias. This aligns perfectly with India’s growing premium EV segment, which favors the quiet performance and packaging efficiency only EVs can deliver.
• Status & Exclusivity Re-defined: In India’s highly competitive luxury vehicle space, exclusivity is key. A six-wheel MPV or a sporty coupe-SUV bearing the flagship LS badge immediately conveys innovation, forward-thinking, and social signaling-moving status beyond mere price tag to technological boldness.

 

Key Takeaways for Luxury Buyers

1. Think Beyond Saloon Sedans: If your usage profile is primarily chauffeur-driven, involves hosting business guests, or requires carrying multiple passengers in ultimate comfort, the MPV-style LS is positioned as a viable, next-generation option offering unmatched interior space.
2. Driving Experience Still Matters: The coupe-SUV version is explicitly designed to deliver duality, focusing on driver-centric luxury. This is the model to watch if you frequently switch between personal driving and chauffeur service, demanding both performance and elevated status.
3. Check Powertrain & Architecture: While details are not fully confirmed, the electric architecture is strongly implied. Indian buyers should closely monitor production details regarding localization, battery warranty, and how the service network adapts to support these new premium BEV flagships.
4. Luxury Should Be Future-Ready: By repositioning the LS to “Luxury Space,” Lexus is signaling the long-term direction of the brand. Investing in one of these early (or waiting for the production versions) offers long-term value and relevance in a luxury market where traditional sedans are losing dominance.

 

Verdict

The Lexus LS relaunch is far more than a simple model update-it is a philosophical mindset shift driven by evolving global luxury tastes. The LS badge will now represent space, flexibility, premium utility, and futuristic innovation, rather than just executive saloon status.

For Indian luxury car buyers seeking a vehicle that blends world-class craftsmanship with variable usage needs (personal, chauffeured, and family) in equal measure, this new “Luxury Space” LS family is one to watch closely.

Connect with the Motozite Team to explore how the new Lexus LS line-up fits your luxury mobility needs, whether as a VIP-style MPV or a sport-luxury coupe-SUV.

Aston Martin has announced a strategic reduction of £300 million in its five-year development plan, lowering its total investment from £2 billion to £1.7 billion. This cost discipline, driven by factors like sustained US tariffs on UK car imports and “extremely subdued” demand in China, signals a shift toward disciplined sustainability.

Luxury car owners and potential buyers must understand how this decision influences future product cycles, the rollout of new technology like EVs, long-term brand momentum, and potential resale value in a cautious luxury-car market.

 

What’s Happening at Aston Martin?

Aston Martin Lagonda Global Holdings PLC-long considered the ultimate symbol of British luxury and performance currently navigating significant macroeconomic pressures. Following the release of its Q3 2025 results, the company confirmed a strategic tightening of its financial plans:

• Development Spend Reduction: Aston Martin is slashing its planned capital investment in engineering and development by £300 million.
• Revised 5-Year Investment Target: The five-year product investment target has been revised downwards from approximately £2.0 billion to approximately £1.7 billion.
• Reduced 2025 Capital Expenditure (Capex): The company has also reduced its capital expenditure forecast for the full year 2025 from a previous target of £375 million to approximately £350 million.

The Cause: This cost-cutting exercise is a direct response to a challenging global environment, primarily citing:

1. US Tariffs: The sustained impact of recent US tariffs (including the 25% tariff on automobile imports, later reduced to 10% on the first 100,000 UK imports) has added significant cost and complexity to one of Aston Martin’s key markets.
2. Weak Chinese Demand: Demand in China remains “extremely subdued” due to economic weakness and changes to ultra-luxury car taxes in the region.
3. Broader Headwinds: Global supply chain disruptions and general inflationary pressures continue to weigh on profitability.

 

Why Luxury Car Buyers Should Care

When a premium, exclusive brand signals such a significant tightening of investment, it transcends a simple business headline. For current owners and potential buyers, this strategic shift raises key questions regarding the luxury proposition:

• Future Product Innovation: Reduced development spending could mean longer product cycles, delayed new model launches (especially for next-generation electric vehicles, which Aston Martin has already delayed), or a slowdown in the rollout of cutting-edge technology.
• Resale Value and Brand Strength: Luxury investments are tied to expectations of exclusivity, continuous innovation, and unwavering brand strength. Signals of cost discipline, while financially responsible, may introduce caution among collectors and affect future valuations if the product portfolio begins to feel dated faster than rivals.
• Impact on Current Owners: A review of the future product cycle plan could subtly impact the timing of model refreshes (mid-cycle updates). Current owners rely on continued brand desirability and a strong future product pipeline to protect their asset’s value.

 

Key Financial Details & Data Points

The financial discipline is centered on the following confirmed figures from the Q3 2025 results:

Metric	Original 5-Year Plan (c. £2.0bn)	Revised 5-Year Plan
Product Investment	~£2.0 billion	~£1.7 billion
2025 Capital Expenditure	~£375 million (Latest Target)	~£350 million

Related Triggers: The Tariff Factor

The introduction of the US tariff quota mechanism has been particularly challenging. While the UK secured a deal limiting the tariff rate to 10% for the first 100,000 British-made cars, the administrative complexity and the initial 25% tariff rate caused operational disruption and higher costs in the US market, forcing the company to limit its exports at one point in 2025.

 

Implications for Aston Martin Models & Luxury Buyers

Aston Martin’s shift is a move toward disciplined sustainability, but it carries tangible implications for the product experience:

• Model Refresh Timing: Buyers should anticipate potentially longer intervals between major platform overhauls or mid-cycle refreshes. The review of the product cycle plan aims to “optimise costs,” which often means stretching the lifecycle of existing models.
• Technology Rollout Focus: Future investments will be intensely focused. While key models like the Valhalla plug-in hybrid are entering production and expected to boost 2026 profitability, less essential or high-cost features, such as mass-market electrification or advanced, bespoke infotainment systems, may be prioritized only for the highest-margin models.
• Exclusivity vs. Momentum: On one hand, fewer new launches and special editions could inadvertently enhance the long-term scarcity and exclusivity of the models that do get launched. On the other hand, if product cycles slow significantly compared to rivals like Ferrari or Lamborghini, it risks diminishing brand momentum and perceived innovation.

 

Broader Context: Luxury Auto Industry Under Pressure

Aston Martin is not operating in a vacuum. The entire high-end automotive segment is adjusting to a perfect storm of macroeconomic challenges:

• Geopolitical Trade Tensions: New and evolving trade tariffs and import levies globally are complicating export logistics and driving up landed costs, especially for UK and European marques shipping to the US.
• China Market Slowdown: The crucial, high-growth Chinese market for ultra-luxury goods has noticeably cooled due to economic uncertainty and regulatory changes affecting high-net-worth individuals.
• Input Costs & Supply Chains: Persistent global supply chain vulnerabilities, including a recent cyber incident impacting rivals like Jaguar Land Rover, continue to present risks and maintain elevated input costs.

For today’s luxury-car buyer, this means the landscape requires more critical evaluation. Successful brands will be those that can adapt their cost structure intelligently while fiercely protecting the core product desirability that justifies their premium price tag.

 

What Should Luxury Buyers in India Consider Now?

For buyers in the Indian market, where brand prestige and future value retention are key considerations, awareness of Aston Martin’s strategic direction is vital:

1. Evaluate Brand Health (Holistically): Go beyond local sales figures. Assess the brand’s global positioning, the confirmed timeline for major new launches (like the ramp-up of Valhalla deliveries), and the leadership’s plan for navigating macro-risks.
2. Scrutinize Refresh Cycles: If you are considering a current-generation core model, research its last refresh date. Delayed refreshes can rapidly affect the model’s perceived modernity and subsequent resale value.
3. After-Sales Support: While cost-cutting is focused on development, ensure that regional investment in after-sales service, parts availability, and technical support remains robust in your area.
4. Negotiation & Timing: Current market volatility may present unique buying opportunities (favourable pricing or enhanced bespoke options). Approach the negotiation table informed about the brand’s strategic cost discipline and global challenges.

 

Final Take-Away

Aston Martin’s decision to reduce development spend and investment signals a necessary strategic shift: from an era of ambitious expansion to one focused on disciplined, profitable sustainability. For luxury-car buyers, the message is clear: long-term brand viability, the strength of the future product portfolio, and protected ownership value are just as important as the immediate thrill of the purchase.

In this shifting luxury landscape, choosing a car means betting on the brand’s resilience and its relevance for years to come.

Lexus is undergoing a strategic “rebirth” under President Takashi Watanabe, transitioning from a premium automaker to a “mobility lifestyle” innovator. The brand’s focus on full electrification (BEV), new mobility formats (beyond cars), and the separation of the ultra-luxury Century marque are key drivers.

This transformation aims to deliver a future of enriched luxury experiences, bespoke mobility, and next-generation, technologically advanced electric vehicles for the global luxury buyer, including the Indian luxury car market.

All major claims regarding the strategic direction, the role of President Watanabe, the Century separation, and the focus on BEVs were verified as accurate based on recent official announcements, especially those surrounding the Japan Mobility Show 2025 (JMS 2025).

• JMS 2025 Rebirth: Confirmed as the official platform for announcing the strategic shift.
• President Takashi Watanabe: Statements on shedding past constraints and exploring new mobility formats are directly quoted/paraphrased from his interviews/briefings at JMS 2025.
• Century as Separate Ultra-Luxury Brand: Confirmed. This move frees Lexus to focus on future, electrified, and diverse mobility solutions, as Century takes on the role of the ultra-traditional flagship.
• Electrification Strategy: Lexus is indeed shifting its focus to Battery Electric Vehicles (BEVs) and next-generation platforms, aiming for a global BEV-only lineup by 2035 (and 2030 in some regions like North America).

 

A Luxury Brand Re-Imagined: Discover the New Lexus Identity

At the recent Japan Mobility Show 2025, Lexus officially declared it is not simply evolving-it is being reborn. President Takashi Watanabe explicitly described this as a moment to shed past constraints: “If we continue to protect our old image and constraints, we will never expand or grow.” The brand is transforming its identity from a premium automaker to a comprehensive “mobility lifestyle” innovator.

Key Themes in this Rebirth:

• Unified Luxury Identity: Loosening the link between body-style (sedan/SUV) and luxury hierarchy, focusing on the customer experience first.
• Full-Electrification Strategy: Electrification that goes beyond mere compliance, instead driving emotional engagement and new vehicle value.
• Expansion of Mobility Formats: Exploring new experiences beyond traditional cars, including potential terrestrial (luxury MPVs, 6-wheelers), marine, and aerial applications.

 

Strategic Pillars – Delivering Future-Ready Luxury

Pillar	Insight	What It Means for Luxury Buyers
Electrification & Technology	Shifting emphasis from traditional hybrid systems to full Battery-Electric Vehicles (BEV), with a focus on creating new value (e.g., advanced drive systems, steer-by-wire).	Expect next-generation BEVs with high-range batteries (Toyota/Lexus solid-state batteries are planned), bespoke EV performance, and truly advanced digital integration.
Mobility Beyond the Car	Next-gen model architecture prioritizes ‘space and experience’ over conventional body-style classifications, as seen in concepts like the LF-ZL.	Luxury buyers may see sub-brands or new vehicle formats (e.g., ultra-luxury MPVs like the LM, micro-mobility, or bespoke high-end EV concepts).
Refined Luxury & Craftsmanship	Core DNA of Takumi Japanese craftsmanship and quiet refinement remains, but is now focused on the future. The separation of the ultra-luxury Century marque frees Lexus to innovate.	This means a refined crafts-and-technology blend-exclusivity, bespoke materials, and smart, subtle luxury, rather than overt flash.

Key Shifts: The New Brand Hierarchy

The formalization of the Century program as a separate ultra-luxury marque is perhaps the most significant structural change.

• Century: Now a standalone, ultra-luxury brand positioned above Lexus, focusing on traditional Japanese luxury, heritage, and chauffeur-driven experiences.
• Lexus: Now fully free to focus on innovation, performance, electrification, and next-generation mobility for the modern, discerning luxury buyer.

 

Implications for Luxury Car Buyers in India

For the premium buyer in India, these changes signal a distinct shift in the competitive landscape:

• Future-Ready BEVs: Lexus’s commitment to new EV platforms suggests upcoming models will rival European BEVs on technology and performance. Ownership quality and the delivery of a premium electric experience will be key differentiators.
• Bespoke Luxury Value: The luxury equation is moving beyond just badge and power; experience, customisation, and mobility format are becoming critical. Lexus is actively tailoring its products and experiences to this new paradigm.
• Brand and Resale Value: Repositioning toward radical innovation may significantly enhance Lexus’s appeal among high-net-worth individuals. However, the speed of model rollout, local-market specific support, and the charging infrastructure for these next-gen BEVs in India will remain crucial factors for early adopters.

 

Challenges & Watch-Points for the Lexus Rebirth

• Speed of Execution: Translating a clear strategy into quick, successful global product launches (new BEVs, new architectures) is the primary hurdle.
• Infrastructure & India Fit-out: The premium EV space in India still faces challenges around fast-charging, service network readiness, and localized battery support. Lexus must deliver an infrastructure solution worthy of its premium buyers.
• Brand Focus: As the brand broadens its scope (“land, sea, sky”), buyers must ensure their chosen model aligns with the core luxury-vehicle promise, avoiding any sense of a diluted “mobility service.”

 

Verdict: Lexus’s Next Chapter is Your Opportunity

Lexus’s “rebirth” offers a compelling proposition: a luxury brand that successfully blends quiet, reliable Japanese craftsmanship with radical, electric innovation. It’s an alternative to the dominant German marques, positioning itself with a fresh outlook and serious ambition for the future of mobility.

If your priorities include:

• Distinctive luxury with a strong craft-and-tech identity.
• Electric mobility with premium execution (not compromise).
• Ownership that reflects a forward-looking lifestyle and exclusivity.

…then Lexus’s upcoming next-generation models deserve your attention.
Connect with the Motozite Team to evaluate the upcoming Lexus model line-up, assess how their strategy plays out in India and find the one that fits your luxury-car vision and future-proof ownership.

Once hailed as the world’s most profitable car manufacturer, Porsche has swung into the red for Q3 2025, reporting a sharp €967 million ($1.04 billion) operating loss. This dramatic reversal is primarily driven by a costly €3.1 billion strategic realignment, including the shelving of its all-electric SUV project, a costly pivot back toward hybrids/ICE, mounting U.S. import tariffs, and a significant drop in China sales. These factors have profound, short-term ripple effects for luxury-car buyers and owners globally.

 

What Happened  The Numbers & Key Signals

The Q3 2025 results mark a turbulent period for the luxury marque:

• Q3 Operating Loss: Porsche reported an operating loss of €967 million in Q3 2025, a dramatic turnaround from a profit of €974 million in the same period in 2024.
• 9-Month Profit Collapse: For the first nine months of the year (9M 2025), operating profit collapsed by 99% to just €40 million, down from over €4 billion a year earlier.
• Revised 2025 Margin: The full-year operating return on sales forecast has been cut drastically to a slim 0% to 2% (down from a double-digit percentage previously).
• Future Outlook: The company expects 2025 to be the “trough year” and forecasts a gradual return to a high single-digit margin by 2026 as restructuring takes effect.
• Deliveries: Despite the losses, Porsche still delivered approximately 212,509 vehicles by the end of Q3 2025, and expects full-year revenue between €37-38 billion.

Major Contributing Factors:

1. Strategic Realignment: Extraordinary costs of roughly €3.1 billion for the full year, mainly tied to scaling back its aggressive EV strategy (including scrapping in-house battery production).
2. U.S. Import Tariffs: Mounting tariffs are estimated to cost the company a direct hit of around €700 million in 2025.
3. China Slowdown: Sales in the key Chinese market were down 26% in the first nine months due to intense competition and challenging economic conditions.

 

Also Read: Porsche’s Valencia Showcase – How the 99X Electric Story Matters for India

 

Why Luxury Car Buyers Should Pay Attention

Porsche’s financial health is not just a boardroom issue; it directly impacts the customer experience and the long-term value of their assets.

Brand Strength & Investment Levels

A brand’s financial instability can translate into short-term austerity. Luxury buyers expect consistent investment in new technologies, faster product roll-outs, and a growing catalogue of bespoke options. Porsche’s current losses may lead to:

• Delayed Model Refreshes: The strategic stress could postpone the launch cycles for new generations of popular models.
• Reduced R&D Focus: A necessary focus on cost efficiency could temporarily slow the pace of technological upgrades.

Resale Value & Market Perception

Porsche has historically commanded some of the strongest resale values in the automotive world. While a single quarterly loss won’t destroy this, persistent financial volatility reflects market risk. Buyers considering long-term ownership must monitor how this strategic pivot affects:

• Model Desirability: Will the shift away from an all-electric future for certain key models, like the larger SUV, dilute the brand’s perception as a technological leader?
• Taycan Depreciation: The high depreciation of early electric models (like the Taycan) is part of the reason for the strategic pullback, making the value proposition for current EV owners more uncertain.

Technology Trajectory

The cancellation of the all-electric SUV (K1) and the decision to keep models like the 911, Panamera, and Cayenne available with combustion/hybrid engines well into the 2030s signals a major pivot. For luxury buyers, this means:

• Focus on Hybrid: Porsche is now placing a massive bet on Plug-in Hybrid Electric Vehicles (PHEV) as the bridge technology, suggesting future product investment will heavily favour this space.
• Extended ICE Life: Traditional sports car buyers can be assured that the combustion engine (ICE) remains a core part of the brand’s immediate future.

 

What’s Going On Behind the Scenes

Issue	Details	Financial Impact & Strategic Shift
Product Strategy Pivot	Porsche cancelled the planned all-electric SUV (K1) above the Cayenne, choosing instead to offer it with ICE/PHEV options due to slower-than-expected luxury EV demand. It also scrapped in-house battery development plans.	Total extraordinary expenses for this realignment hit approximately €3.1 billion for the full year 2025.
Tariff & Trade Headwinds	U.S. import tariffs imposed on European imports are directly impacting profitability in Porsche’s largest single market (North America).	U.S. tariffs alone are expected to cost the company roughly €700 million in 2025. Porsche plans to offset this by raising vehicle prices in the U.S.
China Slowdown	The key luxury market, China, is dealing with fierce competition and price wars from domestic EV brands, coupled with wider economic pressures.	Deliveries were down 26% in China (9M 2025), significantly hurting volume and margins.
Margin Pressure	The revised 2025 operating return on sales guidance now stands at just 0%2% (down from a pre-restructuring target of 15-18%).	This indicates substantial cost inefficiencies and structural pressure being accepted in the short term for a long-term recalibration.

 

Implications for Porsche Buyers in India

For Indian luxury buyers, who often view their cars as investments as much as status symbols, these shifts require extra scrutiny:

• Timing of Purchase: Consider waiting until 2026. If 2025 is the “trough year” as management suggests, a recovery in 2026 could coincide with renewed investment, better clarity on product cycles, and potentially more stabilized pricing.
• Electrification Readiness: Given that Porsche is pivoting globally, buyers of models like the Taycan must scrutinize the local infrastructure commitment. Examine the local support for BEV ownership in India (fast-charging networks, service center readiness, and parts availability) before committing to a pure EV.
• Model Selection: If you seek long-term stability in residual value, focus on heritage models that are confirmed to carry ICE/Hybrid well into the 2030s (like the 911 or the newly hybrid-focused Cayenne and Panamera successors).

 

Verdict  Stability in Turmoil, But Buyer Vigilance Required

Porsche’s fall from being the world’s most profitable car company to posting a heavy Q3 loss in 2025 is a stark, if temporary, reality check.

This is not a reason to avoid Porsche entirely-the brand maintains high prestige, strong heritage, and phenomenal performance vehicles. But it is a reason to be highly cautious and diligent. Ensure your purchase aligns with:

1. The Brand’s Strategic Direction: Are you buying a hybrid or ICE model, which is now the company’s focus, or a BEV, which has seen strategic contraction?
2. Local Support Capability: Is the local dealer network ready to absorb the potential after-sales pressure resulting from restructuring efforts?
3. Your Ownership Horizon: For buyers seeking maximum value, patience until the 2026 recovery phase is recommended.

In short, your luxury car is partly an investment in brand relevance. By knowing that the landscape is changing rapidly.

Connect with the Motozite Team to analyse how the Porsche brand’s current challenges impact your buying strategy, model timing and long-term luxury-car ownership value.

At the latest earnings call for Q3 2025, Mercedes-Benz CEO Ola Källenius said the auto industry must “adapt like animals” to survive intense competition in China and the U.S. With sales in China down 27% YoY and U.S. volume off 17%, the luxury brand’s battle-and by extension what it signals for premium-car buyers-is as much strategic as it is mechanical.

 

Why This Statement Catches the Eye of Luxury-Car Owners

When a luxury-car manufacturer’s CEO uses metaphors like animal survival instinct, it’s more than PR-it signals deep structural shifts. Here’s why this Mercedes-Benz strategic pivot matters for buyers of premium vehicles (especially in markets like India):

• Brand strength & future-proofing: A brand that feels threatened globally may either become more aggressive in product investment (good for buyers) or face cost cuts and delays (risk for buyers).
• Sign of shifting priorities: Mercedes-Benz isn’t just saying “we must survive” — it’s saying “we must thrive by changing.” That means product mix, electrification, localisation and pricing strategies may pivot.
• Implications for ownership experience: If competition intensifies, expect potential changes in how luxury brands deliver value through customisation, limited editions, service experiences, or even shifts in resale value.
• For Indian luxury-car buyers: Understanding how global battles play out helps you assess a brand’s local presence, future launches, service network, and how cutting-edge your purchase really is.

 

What the Numbers Tell Us (Q3 2025 Sales Volume)

Region	Performance	Impact
China	Sales down ~27% YoY for Q3.	Chinese luxury market stalling affects global premium brands’ growth-and impacts investment in region-specific models.
United States	Sales down ~17% YoY.	U.S. remains a key luxury market; weaker demand plus tariffs create pressure on pricing and variant availability.
CEO Quote	“The animal that can adapt is the one that survives and thrives in evolution.”	A compelling metaphor signalling urgency in strategy and operational efficiency.

 

Strategic Implications for Mercedes-Benz & the Premium Segment

• Product Cycle Pressure: With global headwinds, luxury brands like Mercedes may delay or rethink certain flagship launches or reduce product variants-impacting premium buyers seeking the latest.
• Localization Matters: In India, models may increasingly be tailored for regional markets (“China-fit” tech, local manufacturing) as global export flows get disrupted. Källenius emphasised that adaptability includes local engineering and cost control.
• Pricing & Margin Dynamics: Margins in premium cars are under pressure due to costs (tariffs, supply-chain, competition). Mercedes flagged higher tariff headwinds (e.g., U.S. import duties) in recent results.
• Electrification & Differentiation: To survive, luxury brands must deliver clear value in EVs and high-end models-not just incremental updates. Buyers must ask: Does my chosen car reflect this strategic shift, or is it a carry-over of older architecture?

 

What Luxury Car Buyers in India Should Do

• Check product roadmap: If you’re buying a high-end Mercedes variant now, understand when the next version is due-if global pressure delays launches, then early buyers may hold value.
• Local-spec adaptation: Since Mercedes is emphasising adaptation, ensure the car you buy is suited to India’s conditions (charging network if EV, tariff impact if ICE, service availability).
• Understand exclusivity & variant strategy: With competition high and margins under pressure, brands may focus on fewer bespoke models or those with stronger margin potential. Limited-edition models may be better protected.
• Resale and ownership experience: A brand fighting global battles must still deliver local support-test the service ecosystem, spare-parts availability and how brand changes get passed to customers.
• Prepare for strategic shifts: If you buy a luxury Mercedes now, be ready for potentially faster product turnover or stronger emphasis on electrified or niche models-your ownership horizon matters.

 

Final Takeaway

When Mercedes-Benz’s CEO calls for “animal spirit” amid global market turbulence, luxury-car buyers should listen. This isn’t just about business jargon-it’s about how a major brand is reacting to deep structural changes in the premium-car landscape. For buyers in India’s luxury market, this translates into questions about timing, variant selection, brand support and long-term value.

If you’re seeking a luxury car that aligns with today’s premium brand emphasis on agility, differentiation and future-readiness, it pays to assess not just the model in front of you but the brand’s global resilience and strategic direction.

Connect with the Motozite Team to explore how the current premium-car environment by Mercedes-Benz’s strategic pivot affects your luxury-car purchase decision, variant timing and investment value.

In a powerful statement ahead of Season 9 of the TAG Heuer Porsche Formula E Team, Porsche completed intensive test sessions at the Circuit Ricardo Tormo in Valencia, Spain. Covered by coverage like “Porsche turns heads in Valencia with Cayenne-inspired 99X electric livery”, the event highlights how Porsche’s electric racing platform and livery strategy signal serious brand intent – not only in motorsport but in its electric-vehicle roadmap and global luxury performance narrative.

 

Setting the Scene: Valencia & Porsche’s Electric Push

Valencia’s Circuit Ricardo Tormo isn’t just any racetrack – it’s the crucible where electric racing teams fine-tune both speed and strategy. Porsche’s presence there, with the 99X Electric Gen3, underscores a dual mission: dominate on the track and translate that tech prestige into its premium EVs. During the test, the team logged close to 1,800 km of running across drivers, including Pascal Wehrlein and António Félix da Costa, who remarked on the car’s “less weight and more power”.

Why should this matter to Indian luxury-EV buyers or auto-enthusiasts? Because this kind of motorsport-level development often filters down to production cars – in battery tech, chassis tuning, performance software and brand perception.

 

Three Key Insights from the Valencia Test

1. Electric performance credibility goes hand in hand with brand luxury.
   Track-tested cars like the 99X Electric show Porsche isn’t just participating in EVs – it intends to lead in performance electrics. The fact that the livery draws inspiration from the Cayenne, a benchmark luxury SUV, tells the story of the crossover between Porsche’s luxury SUV heritage and its electric future.
2. Technology transfer: road race.
   The Gen3 car features an 800V architecture, high-efficiency motors, and rapid energy recovery systems. These tech innovations often become pillars of Porsche’s electric road cars. In an era where Indian buyers are increasingly looking at luxury EVs, the underpinnings of Porsche’s motorsport efforts become a differentiator.
3. Global brand impact – and what it means for India.
   Porsche’s global visibility in Formula E doesn’t just build prestige; it strengthens its product credibility and resale appeal. For Indian buyers, owning a vehicle from a brand actively shaping electric performance and global motorsport carries emotional and investment value.

 

What Indian Buyers Should Take Away

• Performance EVs aren’t just about power; they’re about pedigree. The Porsche 99X testing effort signals that Porsche sees EVs not as a compliance measure but as a core pillar of luxury performance.
• Look for tech maturity. If Porsche’s race programme feeds into its production EVs, Indian buyers should expect robust battery architecture, effective thermal management and high drivetrain efficiency – all important in hot climates like India’s.
• Brand future-proofing matters. As luxury EV options proliferate, brands that invest deeply in EV-motorsport and platform development may secure stronger resale value and longer-term relevance.
• Local relevance. While the Valencia test is global, Indian buyers should check how much of this high performance and tech is localised for India (charging infrastructure, after-sales, climate adaptation).
  

 

Challenges & Caveats

• Motorsport success ≠ , instant production rollout. Porsche’s work in Valencia is promising, but translating it into Indian-market models takes time, regulatory adaptation and localisation – so buyers may have to wait.
• Cost vs value. Premium EVs built with race-derived tech come at a price premium. Indian buyers must judge whether the additional cost aligns with the usage pattern and sophistication expectation.
• Infrastructure readiness. Even the best EV technology needs supporting infrastructure – charging network, service centres, parts support. Luxury EV buyers in India should evaluate this carefully.
  

 

Verdict: Why Porsche’s Valencia Move Matters for You

Porsche’s Valencia showcase with the 99X Electric isn’t just a photo op; it’s a strategic signal. For Indian luxury-EV buyers or enthusiasts, it suggests that Porsche is aligning its luxury legacy with future-proof EV performance. If you’re in the market for a prestige EV – or waiting to see what Porsche brings next to India – this moment is one to note.

Want to map this insight into your next luxury EV decision? Connect with the Motozite Team to explore how Porsche’s electric drive strategy could influence your ownership experience and value proposition.