Automobile , India (Common Wealth) _ Mercedes-Benz said it expects its best-ever sales in the country in the current calendar year, thanks to the debut of the all-new SUV GLC at the core of the luxury vehicle market. With this new model, the company intends to increase sales in its core category, which climbed by 13% to 8,528 units in the first six months of the year.
Santosh Iyer, managing director of Mercedes-Benz India, told ET, “We have seen strong growth in the first half.” Our main segment accounts for up to 60% of our sales. With the introduction of the GLC, we anticipate that this share will grow even more in the following months.
Iyer was speaking on the eve of the debut of the GLC, which starts at Rs 73.5 lakh (ex-showroom, India). In the last two weeks, the company got 1,500 automobile reservations. In the core luxury market, the business sells five essential models: the GLB, GLE, C-Class, E-Class, and S-Class, with prices ranging from Rs 60 lakh to Rs 1 crore.
Iyer stated that the company has managed to defy the trend in the luxury vehicle market in India (where manufacturers generate the majority of their sales from the entry segment) by rapidly expanding quantities of top end vehicles (Rs 1 crore and above). The entry sector accounts for 15% of our sales, the core 60%, and the top end vehicles account for the remaining 25%. We have witnessed exponential increase so far, in the higher-end sector. While this rate may now be decreasing, demand will remain strong due to the strong base.
The company already has 3,500-4000 automobiles on order. With consumer demand maintaining high as the country enters the holiday season, Iyer believes the company will achieve its highest-ever sales in 2023. “We expect the momentum to continue and to report double-digit sales growth in the current fiscal year.” “2023 should be our best year yet,” he stated. Previously, the company announced record sales of 15,822 units in fiscal year 2022.
Approximately 20,000 luxury vehicles were sold between January and June 2023, according to industry estimates. Mercedes-Benz India dominated the market with a about 50% share, followed by compatriot BMW. According to Iyer, macroeconomic fundamentals in the local market remain strong. This, combined with robust corporate earnings, is boosting luxury vehicle sales in the country at a time when most of the West is facing recessionary threats.
To keep the enthusiasm going throughout the holiday season, the company plans to release four more goods throughout the year. Mercedes-Benz will introduce a total of ten models in 2023.
Mercedes-Benz India anticipates record revenue in 2023, as sales of top-end vehicles (TEVs) – those priced above 1 crore – have been expanding rapidly and currently account for one-fourth of total income. TEV sales at the German luxury car maker’s local arm more than doubled in the January-March quarter of current calendar year, beating the 17% gain in overall volume.
Mercedes-Benz India managing director Santosh Iyer told that in the first five months of 2023, the business sold 1,700 automobiles costing more than one crore, adding 3,000 crore to its revenue. “We forecasted double-digit growth last year, and based on first-quarter results, we are confident of maintaining the growth trajectory and having yet another year of record sales,” Iyer added.
Driven by TEVs, which are expected to contribute more than 28-30% of revenue, it might also be a record year for revenue, he said on the occasion of the unveiling of the AMG SL 55 4MATIC+ roadster variant, which is expected to cost more than 2.35 crore, he said.
