Mercedes-Benz Launched India’s First AI Vehicle Scanner

In August 2026, Mercedes-Benz India launched an AI-powered 360-degree vehicle scanner in Mumbai and introduced a Service Select program offering. This launched a discount program for cars seven years and older and deployed India’s first automaker-used AI-powered Vehicle Scanner in Jogeshwari to automatically check car exteriors and tyre wear, leveraging 360-degree cameras to cut ownership costs and improve service.

Inside Mercedes-Benz India’s New AI Service Tech

Mercedes-Benz India Managing Director and CEO Santosh Iyer announced the launch of India’s first AI-driven automated vehicle scanner, improving overall transparency and efficiency in services. The new Service Select loyalty program facilitates benefits for Mercedes-Benz vehicles over seven years old, including savings of up to 25% on select parts and a two-year warranty.

The company also highlights its STAR EASE Service Package and a comprehensive service network with over 90 touchpoints and 1,200 service bays, further supported by more than 4,200 employees. Other services include the MB. CHARGE Public, MBFS Mobile App, and SKYLine dealer management system.

The AI Vehicle Scanner not only digitizes service inspections by capturing a vehicle's exterior condition and identifying damage, reducing manual entry and paperwork, but also offers service advisors real-time vehicle data on tablets, and customers can view a digital record of their vehicle’s condition before service approval.

Mercedes-Benz has expanded its Mumbai service network with its largest luxury facility, Landmark Cars, featuring 16 maintenance bays, and plans to open over 20 luxury outlets, investing over ₹450 crore in the next two years.

Impact on the Automotive AI Industry

The global automotive artificial intelligence (AI) market size is estimated at USD 4.71 billion in 2025 and is predicted to increase from USD 5.80 billion in 2026 to approximately USD 58.99 billion by 2035, expanding at a CAGR of 28.76% from 2026 to 2035.

According to Precedence Research, automotive AI uses high-resolution cameras to capture exterior conditions and tyre wear by processing data through cloud AI to instantly auto-populate workshop job cards instead of manual entry into the drive-through system.

This technology transforms the automotive AI industry by replacing subjective human vehicle checks with objective, repeatable machine-vision assessments. It uses fusing edge cameras and cloud processing to develop a standardized digital workflow in high-volume luxury retail settings. The system further accelerates customer expectations by turning raw optical data into clear tablet displays. Furthermore, clients can easily review visible damage and approve necessary repairs on the spot.

This further addresses the industry limitations by mitigating human error and bias and solving inconsistent reporting by automating scratch and tread-depth identification. Furthermore, addresses privacy concerns which uses automated image anonymization algorithms to strip out irrelevant personal or environmental data before cloud processing, and it also reduces reception logging time to a few seconds by removing paperwork backlogs for service advisors.

Impact on the Vehicle Scanner Industry

The global vehicle scanner market size is calculated at USD 2.63 billion in 2025 and is predicted to increase from USD 2.77 billion in 2026 to approximately USD 4.41 billion by 2035, expanding at a CAGR of 5.30% from 2026 to 2035.

According to Precedence Research, this launch positively impacts the industry by replacing manual walk-around inspections with a 3-to-5-second drive-through scan and turning subjective checks into instant, transparent, and paperless digital job cards.

As there is traditional car inspections are plagued by human error, reducing wait times and creating extensive paperwork, which Mercedes-Benz aims to address through an automated, AI-driven system. This technology leverages high-resolution cameras to capture over 150 images in seconds, streamlining workflows by sending digital data directly to cloud-based tablets.  The system accurately detects body flaws and measures tire wear by removing human error and offering customers objective, on-screen proof of damage before repair approval, which further ensures a completely efficient service experience.

This global tech rapidly transforms and improves workshop operations by helping workshops handle more cars rapidly with better accuracy and less staff fatigue. The higher adoption of advanced diagnostic tools from Europe and Korea sets a new digital standard for luxury car care and post-sale transparency in India. 

About Mercedes-Benz

Mercedes-Benz is a famous luxury car brand from Stuttgart, Germany, started in 1926. It makes high-end cars, vans, and smart mobility tools. The company prioritizes top luxury, electric power, and digital tech. Its main aim is to build the best luxury cars and shift from high sales numbers to high-value profits.

The brand offers everything from cheap entry cars to ultra-luxury models like the S-Class and AMG lines, plus a growing electric vehicle lineup. It also offers financial help, digital charging, and high-tech customer care. With its Ambition 2039 plan, the company works really hard for a carbon-neutral new vehicle fleet adoption across its entire lifecycle.