Mercedes Benz to get into top gear in Tamil Nadu luxury car market

Boris Fitz, Vice President, Sales and Development says, “In terms of fiscal year, it’s been the best year so far. In the calendar year of 2015, we sold 13,502 cars, which was 30% more than the year before. And in the 2015- 2016 fiscal year, we sold 13,558 units, which is a 21% growth over the previous fiscal year. The numbers are, however, an outcome of strategies and actions put in place. We are introducing 12 new products this year.” 

Fitz says that the market for premium sedans and SUVs in South India, is now looking up, and the company plans to step up its presence in these parts. 

When the ban on luxury diesel vehicles in the capital New Delhi was announced, the company was quick to switch gears to meet the challenge. “We are bringing in more petrol vehicles to capitalise on the demand for these variants, which is significantly growing. A lot of customers are waiting for the Supreme Court and NGT’s final decision,” he adds. Additionally, encouraging sales in the south helped balance some of the losses in the north. “In 2014, the five markets in the South contributed roughly a quarter of our national volume. In 2015, that number went up to 30 per cent. And in the first quarter of 2016, it’s already 36 per cent. We can clearly see that the South has outperformed the north, especially Tamil Nadu, which has done very well. In 2015, Tamil Nadu grew by 35 per cent, as compared to 2014, while our pan India growth was up by 22 per cent,” he explains.

He adds, “Chennai contributes roughly 5 per cent to our national sales volume. Q1 sales here have grown by 31 per cent and Tamil Nadu by 30 per cent and the south grew by 24 per cent. So, Tamil Nadu and Chennai have outperformed both south and pan India.”

Close to 60 per cent of the car parts are made locally. Fitz says India is also the only country outside Germany that produces the Maybach, one of the most complex cars in Mercedes’ portfolio, which has a waiting list in India owing to its demand. “We will continue to expand our dealer network. We are inaugurating 10 new outlets in 2016 and new outlets will be coming up in the South too.