India (Commonwealth) _ In an effort to meet the rising demand in these developing areas, German luxury carmaker Mercedes-Benz plans to increase its presence in India’s tier-2 cities. According to Indian media sources, the company has stated that it would open ten additional service centers in 2024, with an emphasis on improving its after-sales network before growing its sales operations.
Santosh Iyer, the managing director and CEO of Mercedes-Benz India, emphasized the significance of these developing markets in an interview with The Hindu Businessline. “Mini-markets are growth engines,” he said, adding that some have experienced greater growths than the previous year. Although the increase in Raipur and Nashik would be greater,
Suburban areas close to the nation’s major metropolises, such as Delhi and Mumbai, continue to fuel expansion. Since more market penetration draws in more clients, we’ll keep expanding into mini-markets and farther into the industry. By the end of 2024, we want to open ten new workshops in mini-metros and smaller markets, with a primary focus on service rather than sales in these locations.
Mercedes-Benz’s future growth objectives
Mercedes-Benz is investigating the localization of various accessories for the Indian market in addition to growing its service network. The business also intends to convert 25 of its current retail locations into upscale boutiques this year, providing improved client experiences, according to a report by The Hindu Businessline.
Iyer expounded on this retail approach, saying, “We’ve moved away from larger formats and toward smaller, customer-focused retail spaces.” The formats will offer vehicle customization, individual consultations for our high-end car clients, and design studios within the showrooms. When we used to service the cars, we had a great experience and could deliver the automobile for standard maintenance in three hours. The sources said that we would make sure the customer receives a courtesy car from us during this time if autos under the warranty period are delayed in the workshop for longer than three days.
The Mercedes-AMG GLC 43 4MATIC Coupé and CLE 300 Cabriolet AMG were recently unveiled to the Indian market by the high-end automaker. Looking ahead, the article stated that Mercedes-Benz intends to significantly increase the number of electric vehicles it offers in India by introducing its first electric Maybach, the EQS 680 SUV, there in September.
The German automaker Mercedes-Benz hopes to increase its market share in India’s smaller cities, where over the next years, there will likely be a significant increase in demand for luxury vehicles.
In order to meet the demands of the growing number of consumers, the carmaker, which unveiled new GLA and AMG GLE 53 models on Wednesday, intends to improve its sales and servicing infrastructure in the non-metropolitan areas.
Mercedes-Benz India Managing Director & CEO Santosh Iyer said PTI in an interview that the firm is clearly observing that there is a lot of growth happening in small metros in India and that we are now boosting client car parc in these cities.
He said, “The Company is opening up 20 new workshops in 10 new cities like Jammu, Kanpur, and Patna to cater to the needs of the customers.” Therefore, it is extremely evident that clients in these tiny metros should not drive their cars for more than two hours in order to receive servicing. Iyer continued, “So you want to get closer to these customer pockets.”
Compared to metro areas, these cities still have a low level of luxury automobile penetration, It consequently presents greater chances for development, he said. Mini metros and other smaller marketplaces account for the remaining 30% of the market, according to Iyer.
In India, the sales of luxury cars make up little more than 1% of the country’s yearly total of about 40 lakh passenger vehicles. At the moment, Mercedes-Benz is the market leader. According to Iyer, Mercedes-Benz has a 2.5% penetration rate in the eight major cities and metro areas, but just a 0.4% penetration rate in smaller towns and cities.
Mercedes-Benz provides a broad selection of light commercial, heavy commercial, and consumer-passenger equipment. These automobiles are produced in several nations across the world. Furthermore, Daimler AG manufactures city automobiles under the Smart brand.
