Luxury carmakers post upbeat growth despite Delhi ban

The Supreme Court's decision to ban the registration of diesel vehicles having engine capacity over 2,000cc in Delhi-National Capital Region (NCR) has undoubtedly put automakers in a state of flux, with luxury carmakers in the country among the ones being affected significantly.

Nevertheless, Mercedes-Benz India and Jaguar Land Rover India have still managed to end the year on the high note, as both the carmakers today announced record sales figures for the Jan-Mar 2016 quarter.

For Mercedes-Benz, sales during the first three months of the year totaled 3,622 units, up 1.6 percent over last year, and JLR India said its volumes crossed 1,000 units, up 45 percent, without revealing precise sales figures. 

In fact, Mercedes-Benz also posted its highest ever sales for the year ending March 2016 at 13,558 units, up 21 percent over 11,213 units sold during the same period last year. The E-class emerged as the highest selling car model in the first quarter of 2016. It was closely followed by the C-class which remained a significant volume contributor.

The luxury segment in India saw a great deal of action last year and the German luxury marquee was quite aggressive with its launches as it introduced 15 models as a part of its ’15-in-15’ strategy for the year. It has already launched three new models so far this year as a part of its plan to launch 12 products in 2016. JLR India saw volumes gaining on the back of high demand for its recently launched Jaguar XE as well as the Discovery Sport.

Both the carmakers were seriously affected by the ban since all their diesel vehicles in India have engines above 2,000cc. “We have been able to compensate the negative sales impact in the Delhi and NCR market with a strong double-digit growth achieved in most other markets across the country," according to Roland Folger, managing director and CEO, Mercedes-Benz India.

In an attempt to reduce air pollution levels in Delhi and NCR, the Supreme Court, on December 15, 2015, first banned registration of diesel cars and SUVs with engine capacities of above 2,000cc in both the regions till March 31, 2016. The apex court then extended the ban until the next hearing which is likely to take place in April.