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Business News/ Companies / Mercedes Benz counts on the southern markets for sales growth
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Mercedes Benz counts on the southern markets for sales growth

Mercedes Benz has strengthened its footprint in five southern states with 23 outlets located across 10 cities

The luxury car maker sold 13,558 units in India for the fiscal year 2015-16, recording a 21% growth as compared to a year ago period. Photo: AP Premium
The luxury car maker sold 13,558 units in India for the fiscal year 2015-16, recording a 21% growth as compared to a year ago period. Photo: AP

Chennai: Mercedes-Benz India Ltd expects much of its sales growth in India to come from southern markets as sales have stalled in the national capital region after a Supreme Court ban on large diesel vehicles.

“We are banking on markets like the south to outperform the rest of the country," said Boris Fitz, director, sales & network development at Mercedes-Benz. “We are confident that the southern market will help us in our growth story as we prepare for a host of brand and service initiatives in coming months," he said at the Chennai launch of the company’s luxury sports utility vehicle Mercedes-Benz GLC.

“The southern market including Chennai has emerged as a key one for the company and has registered a growth of 24% in the first quarter of 2016 (a total of 3,622 units were sold in India between January and March 2016). Mercedes-Benz has strengthened its footprint in the five southern states with 23 outlets located across 10 cities. This underlines its growing importance," he added.

Fitz added that the company is working on changing the product line-up and will bring in more petrol cars to capitalize on the growing demand.

The luxury car maker sold 13,558 units in India in 2015-16, 21% more than a year ago.

“In spite of a lot of uncertainties in India, Mercedes-Benz has been able to maintain the same level as last year. The last fiscal has been the best year ever for us," said Fitz.

According to the company, roughly 5% of the national sales come from Chennai. In the first quarter of the current fiscal, while the entire southern market showed a 24% growth, Tamil Nadu grew at a rate of 30% from a year ago.

The German car maker which has invested 1,000 crore in India over the last 10 years, had last year announced an investment of 150 crore to double the production capacity at its Chakan plant to 20,000 units per annum.

Expressing concern over the continued uncertainty over the Supreme Court order, Rolger Folger, Mercedes Benz India managing director and CEO had recently said: “Looking into the future, this is extremely difficult mainly because we don’t know what is going to happen now. The big question is what is going to happen after July."

After banning registration of diesel cars and SUVS with engines above 2,000 cc in December last year till 31 March, the Supreme Court has extended the ban until the next hearing which is expected in July.

Two weeks ago, Daimler which owns Mercedes Benz, said it will spend €3 billion ($3.35 billion) to curtail diesel exhaust pollution levels by modifying its engines and exhaust treatment systems including through software update for some Mercedes-Benz passenger cars.

A similar ban on high-end diesel vehicles imposed by National Green Tribunal (NGT) in certain cities of Kerala, was stayed by the state high court. However, the court did not interfere with the order banning diesel vehicles older than 10 years.

Last week, NGT has sought pollution data from other states of their most polluted cities before coming to a decision on extending the ban beyond Delhi NCR.

(With PTI inputs)

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Published: 09 Jun 2016, 02:04 PM IST
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