Mercedes aims double-digit growth despite difficult market

German luxury car maker Mercedes Benz today said it expects a double-digit growth in sales in the current year on the back of new models and expansion in dealership network, even as market condtions are "difficult".

Expecting Indian luxury car market to grow further, Mercedes Benz said that "very high taxation" on luxury vehicles is the major challenge the industry is facing at the moment.

"Mercedes will grow in double digit," Mercedes Benz, MD and CEO, Eberhard Kern told reporters here to a query on company's expectations from Indian market this year.

He was here to inaugurate a new outlet at Mohali.

"Market conditions here are difficult right now. For more than one and a half years, Indian market is not developing quite well," he said.

However, Kern said Mercedes grew by 32 per cent in 2013 by selling 9003 units in comparison to 6840 units sold over corresponding period of 2012.

E Class among all models was its the best selling model as it had one third share in total sales.

It even posted growth of 27 per cent in the first quarter of 2014 with total sales of 2554 units in January-March period.

He said that the company had adopted two pronged strategy in order to attain higher sales of luxury vehicles in India.

"The first part of the strategy is to bring latest technology and models as early as possible to India. Customers here are quite tech savvy and they expect latest technology and latest models," he said.

The company has plans to roll out ten new models this year as part of its strategy for Indian market. It has already launched four models.

"Next one (new model) is to come on May 15 which is ML 63, the high performance SUV," he said without divulging details of other models to be launched later this year.

Kern said India's luxury car market size stood at 32,000 units last year which is just 1.4 per cent of total car market.

"We expect luxury car market to grow further and its (luxury car market) share is quite small at 1.4 per cent of total car market size. We believe luxury (vehicles) will do even better," he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Rajgopal Nidamboor

Let the spirit of sport pervade everyday life

Sport, like meditation, is nothing short of a spiritual act. ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture