Bangalore: Mercedes-Benz, which opened a new research and development centre in India on Friday, expects a rise in India demand for luxury vehicles in the near term, with an increasingly affluent and youthful urban population in the subcontinent opting for more comfortable and technologically superior cars.
The luxury car market in India currently stands at 1.2% of the total passenger car market and is expected to grow to 4% of the market by 2020, or 7 million units, according to figures provided by Mercedes-Benz Research and Development India (MBRDI).
“In the past, we overestimated the demand in India. But now we believe it will grow significantly, hopefully at a much faster rate than in the past,” said Thomas Weber, member of the board of management, group research at Daimler AG told reporters at the inauguration of MBRDI’s research and development facility in Bangalore.
Mercedes-Benz is a flagship brand of Daimler AG, the third biggest maker of luxury vehicles in the world.