Mercedes-Benz to launch compact SUVs by 2016
The carmaker expects the compact car segment to contribute 40% of its sales with the launch of the small and mid-size SUVs
Chennai: Mercedes-Benz India Pvt Ltd. will look to fill the gaps in its product portfolio by introducing small and mid-size sports utility vehicles (SUVs) in the next two years, the top executive of the company said on Friday.
“Currently we have no share in the fastest growing segment in the luxury space, but by 2016 we will close that gap," said Eberhard Kern, managing director and CEO of Mercedes-Benz India at the launch of its luxury S-class sedan in Chennai.
Mercedes Benz’s compact segment comprises the A-class and B-class hatchbacks that account for 20% of its Indian sales. Kern expects the compact car segment to contribute 40% of its sales with the launch of the small and mid-size SUVs.
In 2010, German rival BMW India Pvt Ltd, with its X1, became the first entrant into the compact SUV market, followed by Audi India, which sells the Q3 SUV.
Compact SUVs account for about 10% of the 30,000 luxury cars sold in India, according to industry estimates.
Mercedes-Benz is investing Rs250 crore in its Pune facility to double its capacity to 20,000 units as it plans to launch “a number of products" in 2014.
The 128-year-old carmaker launched eight models in 2013, helping it achieve its best sales figures of 9,003 units, an increase of 32% over the previous year.
“We expect the first half of 2014 to be challenging, and do not expect any big movement in sales. But the second half should pick up," said Kern.
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