Notwithstanding the slack market conditions owing to demonetization and GST, the luxury car market leader, Mercedes-Benz India scripted its best ever half yearly sales, clocking a robust 9 per cent growth to a record 7171 units sold in the January-June 2017 period, from 6597 units sold in the previous year.
The market for luxury car coming in the range of Rs 30 lakh plus has been sluggish for many players like Audi, Jaguar and Land Rover (JLR), but world's largest marquee brand Mercedes-Benz managed to steer ahead with its best ever Q2 sales of 3521 units in April-June period. It had sold 2975 units in the previous year.
Roland Folger, Managing Director & CEO, Mercedes-Benz India attributed the sound 18 per cent growth to its newly launched E-Class sedan that continues to be the single highest selling model for Mercedes-Benz in the second quarter of 2017.
"This sales performance further strengthens our customer centric strategy, which is bearing fruit. We are confident of our leadership in the market by sustaining this growth story in the remaining quarters as well. The demand for the Long Wheelbase E-Class in particular has contributed immensely to our volumes. It is most satisfying to witness that our product introductions were highly appreciated by customers leading to a steady growth across the sedans, SUVs and the performance cars," he said
For Mercedes its freshest GLC remained the highest selling SUV in Mercedes-Benz's portfolio in H1 2017, closely followed by the GLE, GLA and the GLS.
Mercedes-Benz has dropped prices by as much as Rs 1.25 lakh for the CLA sedan breaching the upper limit of Rs 7-lakh for the Maybach saloon. It competitors including BMW and JLR have also reduced prices on account of reduced taxes in the GST regime.
The government has reduced taxes by as much as 12 per cent (the highest on the SUV's) which has translated into sizeable drop in prices. The market is expected to change over the next few months on slashed prices inducing customers to buying new cars and possibly have an explosive festive period ahead. The single tax structure across the country leading to falling prices and financing costs, higher farm income underpinned by monsoon rains should ideally accelerate the rate of growth in the country.
Keeping in view the market potential Mercedes-Benz has erected the largest production facility in India with and investment of Rs 1000+ crore for any luxury carmaker in India. It can easily roll out 20,000 cars annually and with presence in 41 Indian cities through 86 outlets has the largest sales network.
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