What Filipinos define as a luxury car varies depending on many factors, such as their personal preferences, financial capacity, and lifestyle aspirations. For some, it’s the elegant interior of a sedan with premium leather and a state-of-the-art infotainment system. For others, it is the intimidating exterior of a full-sized sport utility vehicle with powerful performance, cutting-edge safety technology, and the versatility to handle both city streets and provincial roads with ease.
Whatever one’s preference might be, it cannot be denied that the luxury market in the Philippines, while still a niche compared to mass-market automotive segments, has become a fixture in the Philippine automotive scene due to the country’s strong economic performance, growing affluence, and stronger demand for prestige brands.
Latest data on the Philippine luxury car market saw a notable increase in sales, surging by 37% in 2023, with total sales climbing from approximately 3,208 units in 2022 to 4,396 units the following year. The substantial growth outpaced the overall growth of the automotive industry that year, showing that the appetite for premium car brands in the country is growing. Lexus, BMW, and Mercedes-Benz dominated the segment, collectively selling 3,861 units and accounting for nearly 88% of total luxury car sales.
The same trend can be observed for the global luxury car market. According to online data firm Statista, the luxury car market is anticipated to generate a staggering revenue of $26 billion by the year 2025, with the average price per unit projected to be at around $120,000. Additionally, the firm also forecasts a steady annual growth rate of 0.89% in the next four years, leading to an estimated market volume of US$27 billion by 2029.
Perhaps, the biggest reason why the luxury car market has been on an upward trajectory in recent years is its ability to maintain value. Global consultancy firm McKinsey and Company noted that while car buyers “prioritize the driving experience and gain great enjoyment from it,” they also expect their vehicles to retain, or even increase, in value. Luxury brands, in particular, benefit from this trend because high-quality materials, meticulous craftsmanship, and stronger resale values make their vehicles highly desirable even years after their initial release.
Brand loyalty also plays a big role in the growth of this segment. Lexus continues to attract customers with its reputation for reliability and customer service, BMW appeals to those seeking sportier driving dynamics, and Mercedes-Benz maintains its appeal among buyers who value tradition and understated elegance. Beyond the top three, niche brands like Porsche, Audi, Land Rover, and Volvo have carved out spaces catering to specific tastes as well.
Another factor fueling the market is the increasing availability of hybrid and electric models from luxury brands. Lexus, for instance, introduced the fully electric RZ 450e in 2023, while BMW expanded its i-series lineup with the i4 Gran Coupé. Mercedes-Benz has also made significant strides with its EQ range, offering options like the EQA, EQB, and EQE SUV.
Mercedes-Benz Philippines, distributed by IC Star Automotive Inc. in the country, noted in a statement that “plug-in hybrid vehicles (PHEVs) are gaining popularity in the Philippines as more people seek environmentally friendly alternatives to traditional gasoline-powered cars.” The premium brand singled out PHEVs’ potential to significantly lower environmental impact, especially when daily drives can be completed using battery power alone, as one of key advantages of this type.
Among the latest entries strengthening Mercedes-Benz’s position in the electrified luxury segment are two highly anticipated plug-in hybrids released a few months ago: the all-new E-Class Plug-in Hybrid and the GLC 350e Plug-in Hybrid.
Both the all-new E 350e and the GLC 350e embody the brand’s dedication to providing the perfect blend of environmental stewardship, cutting-edge technology, exhilarating performance, and classic modern luxury. These PHEVs seamlessly integrate advanced electrification with the distinctive elegance and dynamic performance that define Mercedes-Benz vehicles.
The return of an icon, the all-new Mercedes-Benz E-Class Plug-in Hybrid, is priced at 5,490,000. The model brings back timeless elegance with the exclusive exterior through its Mercedes star mounted on the bonnet. The E 350e’s sculpted contours, confident stance, and signature Mercedes star preserve the beloved model’s prestige while keeping up with the hybrid technology present in cars today for professionals and business leaders who seek sustainability and luxury.
At the heart of the cabin is the impressive MBUX Superscreen, an immersive display concept that redefines digital luxury. The screen combines a 14.4-inch central touchscreen with a 12.3-inch passenger display under a single sleek glass panel. Additionally, the vehicle is equipped with the Burmester surround sound system, composed of 17 speakers, 4 exciters, and 730 watts. The system offers a 4D sound massage and Dolby Atmos playback for an unparalleled audio experience.
The E-Class PHEV is designed to integrate electrification effortlessly into everyday life. It offers on-board AC charging of up to 11 kilowatts (kW), ensuring quick and efficient recharging whether at home or in public charging stations. The vehicle is compatible with Type 2 AC sockets and comes equipped with a charging cable for domestic outlets.
Similarly, one of the brand’s well-loved SUV models, the GLC 350e PHEV, now enters a new era of electrification and is available in Polar White, Verde Silver, and Graphite Grey colors. With its sporty and sophisticated exterior, refined interior, powerful performance, advanced technology, and environmentally conscious features, the model is truly the SUV of choice for Filipinos choosing the luxurious urban and suburban lifestyles in the Philippines.
Versatility meets elegance in the GLC 350e’s spacious interior, offering the largest load compartment in its segment. With the rear seats folded flat, the SUV provides up to 1530 liters of space, which is perfect for weekend escapes, business trips, or everyday errands. With 470 liters available in the cargo position, it proves that functionality and luxury can go hand in hand, every day.
The GLC 350e is also equipped with the latest generation of MBUX (Mercedes-Benz User Experience) for a seamless digital experience. MBUX Navigation Plus supports intelligent route planning, while Apple CarPlay, a wireless system, and the USB Package Plus (with second-row ports) ensure connectivity and convenience for all occupants. Additionally, the model’s 4MATIC all-wheel drive and an Off-Road driving program ensure confident handling across a range of terrains.
At the heart of its advanced hybrid system is a turbocharged engine, delivering a total output of 204 hp, 320Nm of torque, and an all-electric range of more than 100 kilometers, enabling daily commutes and city drives emission-free. Drivers can further enjoy the Transparent Bonnet feature, which provides a virtual view beneath the vehicle to enhance visibility when navigating steep ramps, rough roads, or narrow spaces. — Jomarc Angelo M. Corpuz