Mercedes strengthens hold on ultra-luxury segment in India

India might be the country that developed the world’s cheapest car, and it is no secret that Indian car buyers are well known for being ‘price sensitive’. But at the other end of the spectrum, there is a tiny but a growing interest for the ultra-luxury segment. An interest that Mercedes-Benz India amply stirred when it launched  the S63 AMG Coupé, the S500 Coupé, along with its G63 AMG in new paint shades at a price of Rs 2.6 crore, Rs 2 crore and Rs 2.17 crore, respectively (all prices ex-showroom, Delhi).

Eberhard Kern, MD & CEO of Mercedes-Benz India said despite its ultra-luxury high-performance AMG brand being a niche, having a presence in the segment is important for the carmaker.

“The luxury segment in India is around 33,000-34,000 units (sales per year). Of the sales, the AMG brand accounts for only a few hundred cars. It’s hardly a remarkable percentage of the overall business. But it is an important one,” Kern told Autocar India.

“We are the market leaders in the luxury car segment anyway. So it’s good to have this option available. Secondly, of course it’s a profitable business case. And thirdly, it pays into the brand: the brand perception is influenced by these high-end offerings,” Kern added.

Mercedes-Benz sold 3,566 units in the first quarter of 2015, overtaking key rival Audi, which sold 3,139 units, for the top spot. Moreover, the carmaker sold nearly as many cars in the first half of the year as it did in the whole of 2012.

The company plans to expand the upper end of the luxury car segment with the introduction of these three high-end models. Moreover, it is unlikely that the current rage for SUVs in the country will affect sales of its sportscars and sedans.

 “Even the limousine segments are growing. But yes, the faster growth is seen in the SUVs. And we have addressed this with the G wagon, the GL, ML and GLA. We already have four SUVs in our portfolio and there are more to come.”

The carmaker also announced Designo editions for the S-class and CLS-class that gives the car buyer access to a high level of customization, such as a bespoke exterior and interior apart from different paint schemes.

As of now, Mercedes has launched nine out of its 15 planned models for the year in accordance with its ’15 in 15’ strategy for the Indian market. The carmaker now plans to launch the much awaited AMG GT later this year.