Mercedes-Benz India targets double-digit growth this year

The Dollar Business Bureau

German car manufacturer in India, Mercedes-Benz is targeting double-digit sales growth this year and wishes to retain its top place in the luxury car segment.

“Our outlook in 2017 is to maintain double-digit growth in 2017. In the months of January and February, the sales figures were higher than that of the previous year," said Michael Jopp, Vice President (sales and marketing), Mercedes-Benz India.

Unveiling its E-Class modified model in Kolkata on Wednesday, Jopp said the company’s 2016 sales in India had been due to the ban on diesel in Delhi.

Other factors, such as the government’s demonetisation announcement also had a negative impact on its domestic sales. Despite these challenges, Mercedes-Benz India was able to sell 13,231 units last year.

"There was a slight decline of 1.8% as compared to 2015, the year in which Mercedes became the market leader in the luxury car segment selling nearly 13,500-odd units," Jopp said.

The luxury car maker commands a whopping 45% share in the country’s luxury car segment. It sells 23 models and their variants, nine of which are manufactured in the Chakan plant at Pune.

Referring to the Goods and Services Tax and its subsequent impact on the luxury car segment, Jopp said the GST continues to create plenty of uncertainties in terms of tax rates, to be levied on luxury cars.

"We made a case not to be put in the highest tax bracket and urged that the luxury car segment should be allowed to grow," he said.

In India, the luxury car sales accounts for only 1.5% of the total passenger car volume while its growth remains stagnant.

"We feel that once GST is implemented, there will be some sort of a decline in the short term but will be good in the long-term," Jopp said.

Mercedes is also planning to introduce by 2018 Euro-VI engines in India.