Mercedes-Benz, India’s largest luxury car brand, on Monday announced a record-breaking September, selling one new car every six minutes during the recently concluded Navratri period at an average price of Rs 1 crore, marking the best-ever performance for the three-pointed star brand. Though the July-September quarter was Mercedes-Benz India’s strongest yet, with sales of 5,119 units, nearly half of this — over 2,500 units — came in the final nine days of the quarter.
This surge lifted the company from the red, as total sales in the same quarter last year stood at 5,117 units. Buyer sentiment ahead of the Goods and Services Tax (GST) rate correction had been subdued due to multiple price hikes.
What did Santosh Iyer say?
Speaking to FE, Santosh Iyer, MD and CEO, Mercedes-Benz India, said: “Between September 22 and September 30, there was a huge rally in demand. Every day we sold 270 cars and 10-12 cars every hour, with the average price per car being RS 1 crore.”
For Mercedes-Benz and its peers, luxury car prices were reduced by 6% following a GST cut, effective September 22, the first of Navratri’s nine auspicious days.
“The reduction in the GST rates has certainly improved customer sentiment with its appropriate timing. This was coupled with offers that we rolled out during the quarter,” Iyer added.
What’s the price of BMW G580 Edition One?
Priced at Rs 3.1 crore, the all-electric G580 Edition One launched by Mercedes-Benz in January is sold out for the year. Bookings for next year are now open.
To counter subdued consumer sentiment, Mercedes launched the ‘Dream Days’ campaign, which offered financial solutions to make owning a Mercedes more affordable. “One of our financial products allows the customers to pay increased EMI once a year. So, basically, he has low EMIs for 11 months and one high EMI,” Iyer added.
Under another programme called ‘Key-to-Key’, the company targeted the top-end segment. Customers awaiting the new S-Class, due next year, were offered the existing model with a promise to receive the new model at launch.
During the first six months of the year, Mercedes-Benz India sold 9,357 units, a 4% year-on-year growth. The company expects to close the financial year with growth, supported by Diwali demand momentum.
“We have moved into October with an order bank of close to 2,000 units, and this gives us good confidence for the Dhanteras and Diwali period,” Iyer added.
In 2024, Mercedes recorded 12% volume growth over 2023, selling 19,565 units. This year, the company expects calendar-year growth to be flat.