Mercedes retains top spot in luxury segment; to invest `400 crore in new products, localisation

Mercedes-Benz has seen the demand for SUVs drive growth. The newly launched vehicles such as the GLE and GLs are under waiting period.

By:January 14, 2021 8:10 AM

Mercedes-Benz India has emerged as the number one luxury car brand in the country for the sixth time in a row. Mercedes held the pole position despite a 42.7% year-on-year fall in annual sales to 7,893 units in 2020. The luxury carmaker’s Q4 sales went up 40% sequentially to 2,886 units and were the best quarter for the company in 2020. Sales in Q1 were at 2,386 units but fell in Q2 to 563 units and started recovery in Q3 with the company selling 2,058 units.

Martin Schwenk, MD, Mercedes-Benz India said, the Q4 performance in 2020 was not just about pent-up demand or festival sales but indicated a substantial improvement and sales momentum was going to continue in 2021.

BMW Group India follows in the second position in the luxury segment, with sales of 6,604 units in 2020. This includes the sales of 512 MINI in India. Around 50% of the BMW sales came from locally produces Sports Activity Vehicles.

Mercedes-Benz has seen the demand for SUVs drive growth. The newly launched vehicles such as the GLE and GLs are under waiting period. The EQC electric car allocated for India has been sold off and the initial allocation of the AMG GLE 53 has also been sold out. Similarly, the ‘Made in India’ AMG 43 Coupe are also under the waiting period.

Schwenk said the company would grow by 40% CAGR over the next two years on the back of new launches and localisation of products. The company is investing `400 crore for local manufacturing.

Mercedes-Benz would be launching 15 new products in 2021 beginning second quarter of the year with new products and some of them will be facelifted and this will be the most launches ever in a year by the company and impact of this would be seen in 2022, Schwenk said. The company would be redefining products, redesigning touchpoints and recreating the digital experience as it re-imagines the business in 2021, he said.

In 2020, the company sold 1,250 cars online with online sales now accounting for 15% of the total new car sales. Since its launch in April 2020, the company sold 900 new cars and 350 used cars sold online. But the retail network will be the prime driver of sales and online sales would complement the retail footprint, Schwenk said.

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