With cumulative annual volumes crossing 17,000 units in 2023, India has become the fifth-largest overseas market for German luxury carmaker Mercedes-Benz, and the brand is bullish about our country's potential in the coming years.
The company envisions India climbing up the pecking order, and being among the top 3 overseas markets, out of a total of 118 countries, that are driving strong growth, beyond its three main regions – China, Europe and the USA.
- Mercedes sees potential in India's top-end vehicle segment
- Tier 2 and 3 markets to fuel growth in India's luxury segment
- New dealerships to open in Jammu, Vapi and Kottayam, among other cities
“India plays a key and strategic role for Mercedes-Benz globally. Over the next two-three years, we anticipate India to be among the top 3 overseas markets, thereby contributing significantly to the overall Mercedes-Benz business,” Sagree Sardien, head of Region Overseas, Mercedes-Benz Cars, told journalists during her first visit to the country.
Sardien further added that the company sees strong potential in the top-end vehicle (TEV) category – cars priced over Rs 1.5 crore – as it's been reporting double-digit growth for Mercedes-Benz in recent years. Mercedes-Benz India's TEV sales contribution was pegged at over 25 percent of its total volumes in the country in 2023, and as per Sardien, “This trend will continue in 2024 and beyond.”
“We see India's growth coming from Tier 2 and Tier 3 markets, and hence, we are convinced that focusing on these regions makes sense to tap into the opportunity to expand and fill the white spots,” Sardien pointed out.
Mercedes Benz dealership expansion plans
As a result, Mercedes-Benz India aims to venture into 10 new cities like Jammu, Vapi, Kottayam, among others, and set up 20 new touch points this year, with an intent to bring more customers into the Mercedes-Benz fold, as well as be closer to the customers by reducing their travel time to an outlet to less than 2 hours. Furthermore, with the changeover to its direct-to-customer retail format – Retail of the Future – the company says the strategy has allowed it to offer the right consumer experience, and makes it even more optimistic for growth in the future.
Hormazd Sorabjee
Anurag Chaturvedi
