Mercedes bets big on emerging markets

With an increasing focus on emerging markets, German luxury carmaker Mercedes-Benz foresees that BRIC (Brazil, Russia, India and China) and other emerging economies will contribute up to 50 percent of its global car sales business by 2020.

Speaking on the sidelines of the inauguration of the ‘Centre of Excellence’ at its Chakan (Pune) facility, Matthias Luhrs, chairman of the board of management, Mercedes-Benz India and vice-president, global sales, Mercedes-Benz, said, “We forecast that by 2020, the emerging economies, largely the BRIC countries, will contribute up to 50 percent of our global business. Currently, Europe is growing at a flat rate of 6-7 percent, though we are ahead of our competitors in 2013 even in this market condition. The US is doing nearly 10 percent year-on-year growth for us this year.”

According to Luhrs, China stands as the biggest market followed by Russia, Brazil and India, in that order. “For us in 2013 so far, China has done nearly 210,000 units, Russia has sold 50,000 units, Brazil has sold over 10,000 cars and in India we will do somewhere in the range of 9,000 to 10,000 units,” added Luhrs. The total sales just from the BRIC nations stands around 280,000 units while globally the company has sold nearly 1.3 million cars during 2013. The current sales contribution from the BRIC nations sums up to be nearly 21.5 percent.

Eberhard Kern, managing director and CEO, Mercedes-Benz India Ltd (MBIL) disclosed that “2013 has been an excellent year for us. We have witnessed a 30 percent growth, which marks the best year for Mercedes-Benz India ever. We are planning to launch the new S-class in the first quarter of 2014. Our headquarters have been supporting us greatly and we will launch an Indianised version (right-hand drive and necessary changes) within six months of the global launch of our flagship car. All our plans are on the right track.”

The company also plans to bring another compact car, which we expect would be displayed in the upcoming Auto Expo 2014. MBIL has launched eight models in 2013 so far. The A- and B-class cars have garnered almost 20 percent of overall business for Mercedes-Benz in the past six months.