GST will allow uniform prices across India, says Mercedes-Benz India chief

Excited over possible roll-out of GST, MD & CEO of Mercedes-Benz India, Roland Folger, said that the key tax reform may change the way cars are sold in India. Talking to BT's Chanchal Pal Chauhan he said a transparent taxation regime will bring down prices. Edited excerpts.What will be the impact of GST on the luxury car market?

GST will usher big changes for automotive industry. Besides rationalising the taxes, a uniform system will allow us to have a pan-India price, which currently is cumbersome on account of different rates applicable across every state. The ex-showroom prices of all our vehicles will be the same across India once the GST comes into real practice. If the road taxes are brought in line than the on-road prices will undergo a seamless uniformity. It will also allow easier inter-state shifting of vehicles and lend flexibility into our domestic operations.

You had a slight dip in sales in H1 for the fiscal. With the festive period ahead, will 2016 be the best year for Mercedes-Benz India?

We are the India's largest luxury carmaker and despite the ongoing market restrictions in our largest market, Delhi-NCR, (on account of ban on bigger diesel engines of over 2000cc) we sold 6,597 units in the January to June 2016 period, against 6,659 units sold in the same period last year. We are looking ahead at a buoyant festive period, with some energetic sales from our new launches like the Mercedes-AMG SLC 43. It is the first product being introduced with a new two-digit nomenclature - 43, priced at Rs 77.50 lakh (ex-showroom, Delhi). We have a couple of new products lined-up for India that would fire up the festive season.Despite facing market restrictions in your largest market, Delhi-NCR, how are you coming to the rescue of petrified dealers?

We have been working out with our dealers with regard to inventories and profitability concerns. The abject ban on diesel cars created a host of issues, both at the corporate and dealership levels and we have been constantly sorting it out. We have channelised most of our petrol variants to feed the Delhi-NCR market and also tried to help them on the massive impact on profitability.

Are you planning additional outlets?

We are on the expansion spree. At least a dozen are planned this year and some of the new ones have come up at Pune, Vijaywara, and Nagpur and planning is on for new ones at Ahmedbabad, Delhi and Mumbai. We already have the largest network in the luxury space and will constantly enhance to have superior customer experience.

Your have launched a new 'Dream Car', the Mercedes-AMG SLC 43. Are roadsters doing good here?

These are highly niche cars that have a very strong brand and imagery. Their presence is immense and people swear by their drive and experience. These open cars - cabriolet or convertibles too - are highly sought cars in the Indian market by ultra-high networth individuals. These performance cars have tremendous response. The AMG SLC 43's 3 litre V6 petrol engine can accelerate from 0 to 100 km/h in just 4.7 seconds. Its revolutionary 9G-TRONIC transmission ensures faster and smoother gear changes without compromising on fuel efficiency. Such things create a huge 'Halo' effect on the market with a massive rub off on the brand.  I can conveniently say that our sales in the region are of three digits so far.

Diesel has attracted huge negative tinge and how do you plan to enhance your petrol portfolio?

We plan to add the petrol to all our existing variants in India by September. Basically, it gives customer a choice. In fact we are going back to our earlier years, when Mercedes-Benz was an all-petrol offering in India. We have expanded the market with more engines and petrol would be a central line for us.

Amid the ban (diesel vehicles above 2000cc), how is your much-acclaimed SUV portfolio doing?

We have been concentrating on the SUV's, which have been expanding on the fast pace. Also, the new additions, like the GLC along with the luxury collection of the GLA, GLE and the GLS portfolio. We also have the iconic off-roader Mercedes-AMG G 63, the quintessential SUV that strengthens the SUV portfolio of Mercedes-Benz in the niche end. SUV's have been growing very fast and form a major chunk of our sales in the Indian market.