The luxury car market in India accounts for slightly more than one percent of total passenger vehicle sales, which number roughly 40 lakh units per year. Mercedes-Benz is currently the market leader.
Mercedes-Benz is trying to increase its presence in smaller cities in India, where demand for premium vehicles is likely to rise significantly in the coming years. The carmaker, which debuted new GLA and AMG GLE 53 models on Wednesday, intends to expand its sales and service infrastructure in non-metropolitan areas to meet the demands of an expanding number of consumers.
“We are clearly seeing that there is a lot of growth happening in mini metros in India, and we are now increasing our customer car parc in these cities,” Mercedes-Benz India Managing Director & CEO Santosh Iyer told PTI in an interview.
To meet the needs of its consumers, the company is opening 20 new workshops in 10 additional cities, including Jammu, Kanpur, and Patna, he said.
“So we are very clear that in these tiny metros, people should not be driving for more than two hours to acquire their service. “So you want to get closer to these customers’ pockets,” Iyer explained.
He added that the penetration of luxury cars in such cities is lower than in metros, providing more potential for expansion.
Top metros currently account for approximately 70% of Mercedes’ annual sales.
“Rest 30 percent comes from…mini metros and other smaller markets,” Iyer went on to say.
The luxury car market in India accounts for slightly more than one percent of total passenger vehicle sales, which number roughly 40 lakh units per year.
Mercedes-Benz is currently the market leader.
According to PTI, “Mercedes-Benz has a 2.5% penetration rate in the eight largest cities and metropolitan areas, but only 0.4% in smaller cities and towns, Iyer stated”.
On Wednesday, the firm unveiled the new GLA SUV, which is priced between Rs 50.5 lakh and Rs 56.9 lakh (ex-showroom).
The AMG GLE 53 4MATIC prices begin at Rs 1.85 crore. It can be customized with over 7,000 combinations, with prices ranging up to Rs 2.2 crore.
“The new GLA is a stepping stone into the SUV family..the new AMG GLE 53 Coupe receives further comfort enhancements and performance upgrades,” Iyer went on to say.
SUV sales accounted for 55% of the company’s overall sales in 2023, he observed.
According to Iyer, these new models will increase the demand for the SUV portfolio.
Mercedes-Benz India also presented the Concept EQG, demonstrating its commitment to an all-electric future.
Concept EQG is a near-production version of the G wagon that has been electrified to help the company reach its environmental goals.
The vehicle will make its debut later this year and is expected to be introduced in India as well.
The corporation did not, however, provide a definite date for its launch in India.
