With the emergence of a new class of affluent young Indians on the back

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of rising disposable incomes and change in lifestyles, Mercedes-Benz has seen a shift in its customer profile. The premium carmaker says that its sales in the country is increasingly driven by young entrepreneurs and professionals. The carmaker expects the young customers to continue buying more luxury cars in the coming months.

“The average age of our customers has come down to 35-40 level from the earlier age of 50. An increasing number of young entrepreneurs and professionals from various fields are buying luxury cars and this affluent segment has been boosting our sales volumes,” Suhas Kadlaskar, director, corporate affairs and HR, Mercedes-Benz India, told Financial Chronicle.

“We see about half of our sales coming from new set of customers every year and most of the new customers, nowadays, include young businessmen and professionals from legal, medical and finance segments,” said R Kannan, general manager, sales and operations, Trans Cars, dealer for Mercedes Benz for some parts of Tamil Nadu.

Kadlaskar said the company is very optimistic about the growth of the luxury car market in India, which is pegged at about 8,000 units annually.

The sales volume of the company was hit in the first half of 2009 due to economic slow down and lack of financing options. However, the company has been seeing sequential growth in the past four months. In October, it saw record sales of 325 units compared to 140 units in October 2008. For the period January-October, the company sold 2,640 units.

“We may end the calendar year 2009 with previous year’s volume levels or a marginal decline,” said Kadlaskar. In calendar year 2008, the company sold 3,625 units in India.

With a view to drive sales, the company has unveiled its new E-Class luxury car. It has so far sold about 130 units of this new car.

According to company officials and dealers, ‘C’ class, priced in the range of Rs 30-35 lakh, is the largest selling luxury car of Mercedes in India. ‘E’ class is also selling in good numbers, while ‘S’ class and others have select segment of buyers.

Mercedes-Benz India, which has presence in 24 cities through 12 dealerships and 15 showrooms, is in the process of improving its retail network at an investment of Rs 150 crore. The exercise includes upgradation of existing dealer operations as well as launching of new dealer outlets, said Kadlaskar.