Mercedes-Benz to expand India footprint, target tier-2 cities with 10 new service centres

German luxury automaker Mercedes-Benz is set to expand its footprint in India's tier-2 cities, responding to growing demand in these emerging markets. The company has announced plans to establish ten new service centres in the calendar year 2024, focusing on enhancing its after-sales network before expanding sales operations, The Hindu Businessline reported.

In an interview with The Hindu Businessline, Mercedes-Benz India's Managing Director & CEO, Santosh Iyer, highlighted the importance of these emerging markets. He stated, “Mini-markets are growth engines, and some have shown bigger growths compared to last year. Raipur and Nashik will show higher growth; however, when we look at the absolute numbers, the growth continues to come from the major metro cities in the country, including Mumbai, Delhi, and the nearby suburbs. We will continue to grow in mini-markets and go deeper in the market as higher penetration attracts more customers. We will be focusing on service first rather than sales in these areas and will be opening 10 new workshops in mini-metros and smaller markets by the end of 2024.”

Mercedes-Benz additional expansion plans

In addition to expanding its service network, Mercedes-Benz is exploring the localization of some accessories for the Indian market. According to a report by The Hindu Businessline, the company also plans to transform 25 of its existing retail outlets into luxury boutiques this year, offering enhanced customer experiences.

Iyer elaborated on this retail strategy: “We have gone away from larger formats to smaller retail formats focused on customer experiences. The formats will have design studios in the showrooms, private consultations for our top-end vehicle customers, and will provide customisation of vehicles. In the past, while servicing the vehicles, we had a premium experience wherein we could deliver the car in three hours for normal routine maintenance. However, now if cars in the warranty period are delayed in the workshop for more than three days, we will ensure that during this period, the customer will receive a courtesy car from us.”

The luxury carmaker recently introduced the Mercedes-AMG GLC 43 4MATIC Coupé and CLE 300 Cabriolet AMG to the Indian market. Looking ahead, Mercedes-Benz plans to launch its first electric Maybach, the EQS 680 SUV, in India this September, further expanding its electric vehicle lineup in the country, the report added.