Mercedes eyes sub-`25 lakh market for India growth
The firm aims to have 40% of its portfolio in the below `25 lakh category in the next five-seven years
New Delhi: Mercedes-Benz India Ltd said that at least 40% of its car sales in the country will be derived from models that are priced at less than ₹ 25 lakh in the next five-seven years as the German luxury car maker aims to reclaim its number one position in the South Asian nation by 2020.
India will play a significant role in its global plans, Peter Honegg, managing director and chief executive of Mercedes-Benz India, said on Thursday.
Honegg said that the company’s car sales in the 2012 will be little changed from the previous year.
“At the beginning of the year, we were very bullish about the market," he said. “But due to current market slowdown, we will see a flat growth. We will be matching last year’s numbers."
The company has sold 5,500 units in the first nine months of this year.
“Our chairman aims to be number one globally by 2020 and in India, we will try to be leader before that, as we will have our full portfolio ready by 2015-16," Honegg said.
He expects the company’s A-class car, which is expected to be priced in the less-than- ₹ 20 lakh category, to be its next volume product.
“We did not expect B-class to be a volume product, but with A-class, we will be looking at volumes," he said. “We aim to have 40% of our portfolio in the below ₹ 25 lakh category in the next five-seven years."
A-class is likely to be introduced in India in mid-2013. This will be followed by GLK and GLC—compact luxury sports utility vehicles.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!