Audi claims top slot in 2014 sales in India

New Delhi: The Indian unit of German luxury car maker Audi AG on Monday said it sold 650 more cars than rival Mercedes-Benz India Ltd in 2014, maintaining its leadership in the country’s luxury car market.

Audi India said it sold 10,851 units during 2014 as against 10,201 units of Mercedes. Bayerische Motoren Werke AG’s (BMW) India unit is yet to disclose its 2014 numbers, but it is considered to be lagging by a big margin.

“The strategy that we have implemented in this journey has helped us to not only achieve leadership, but also to maintain it,” Audi India head Joe King said in a statement.

To be sure, data provided by these firms cannot be corroborated as they do not report data to the industry lobby group Society of Indian Automobile Manufacturers (Siam).

On Thursday, Siam’s deputy director general Sugato Sen said that he is still not getting data from these firms. “This is creating problems,” he said.

However, against a government order asking foreign luxury car makers to release sales figures on a monthly basis, the companies continue to release them less frequently. In December 2011, all three German car makers had cited anti-trust laws in their home country for not sharing monthly sales data.

Later, they agreed to share sales figures on a quarterly basis.

However, BMW is yet to share data since December 2013, while Audi has not released sales data from April to December.

Citing an official letter, Mint on 2 June reported that the government has asked nine auto companies, including luxury car makers, to share sales and production data on a monthly basis.

“Needless to say, lack of correct data becomes a hindrance in developing policy interventions. It also adversely impacts our ability to devise plans in a correct and transparent manner,” the department of heavy industries wrote in the letter.

A consultant called the irregularity in sharing sales data a “gimmick”.

“They are using it to their advantage. Whoever sells most during a period, comes out and claims to be the one selling the most,” said Deepesh Rathore, co-founder and director, Emerging Markets Automotive Advisors.

“It is a gimmick and it does not help analysts, media or government in any of the regulatory issues. The government should make it mandatory to release data on a monthly basis.”

The current year promises to be interesting for the segment. Mercedes and Audi are planning to introduce 15 and 10 models, respectively, during the year.

Responding to queries, Eberhard Kern, managing director and chief executive of Mercedes-Benz India Ltd, said that his firm was successful in achieving its target despite difficult market dynamics.

“Though the luxury car market has not shown significant growth this year, we remain the fastest growing luxury car brand in the country today,” said Kern.

To be sure, the Mercedes brand name has had a longer presence in the country, where in 1994 it became the first of the three German luxury car makers to establish a base. Audi, owned by Volkswagen AG, is the most recent entrant into India, where it ventured in 2007. By 2012, Audi had disturbed the established order in which Mercedes-Benz and BMW were the big two, taking the No.1 spot by virtue of customer perception that it was a more modern and stylish marque.

Mercedes ended the year in third position, posting its first decline in sales in more than a decade.

Kern said Mercedes plans to launch 15 new products, inaugurate 15 new outlets and focus on strengthening the brand experience during this year.

“We are confident of posting double-digit growth this year as well, and maintain the growth momentum achieved,” said Kern. The company will also double its production capacity to 20,000 units.

Under the Narendra Modi-led government at the centre, India’s economic growth is expected to pick up pace, which may result in a spurt in luxury car sales in the country.

Mercedes expects the luxury car segment to account for 4% of the 5 million car market by 2020.