Mercedes Benz expects significant sales growth in India
2023.01.08 03:44
Mercedes Benz expects significant sales growth in India
Budrigannews.com – In an interview, the head of its local unit stated that Mercedes-Benz anticipates double-digit sales growth in India this year, despite concerns that a weaker rupee could raise car prices.
According to Santosh Iyer, managing director for Mercedes-Benz India, who spoke with Reuters, the German luxury carmaker’s sales in India increased by 41% last year to 15,822 vehicles, which was its highest level ever in the nation. Additionally, the company has an order backlog of approximately 6,000 vehicles.
He stated that a weakening Indian currency, which could force Mercedes to raise domestic prices as imported components become more expensive, is one risk to the expansion of India’s luxury car market.
One of the Asian currencies with the worst performance was the rupee in 2022, when it lost 10% against the dollar, the steepest drop since 2013.
The exchange rate is one of our biggest concerns. We will see additional price increases as the rupee weakens further. Iyer stated, “So that’s some headwind we see when it comes to the potential for growth.”
According to Iyer, “but we are starting the year with a very healthy order bank, and that gives us the confidence of a growth of double digits even for 2023.”
In 2023, Mercedes intends to introduce ten brand-new automobiles in India, the majority of which will cost more than 10 million rupees ($120,000), the highest-priced segment, which grew 69% in 2022. Gasoline automobiles, electric vehicles (EVs), and plug-in hybrids will be among the new offerings.
In 2022, the company introduced three electric vehicles in India, one of which was an electric version of its flagship sedan, the S-Class. There has been a lot of demand for electric vehicles, and Indian customers have to wait four to six months to buy one. Before introducing additional EVs, Iyer wants to reduce this to two to three months.
Renault (EPA:): India’s EV market is gaining momentum. Reuters reported on Friday that is thinking about building a mass-market EV locally in a new push into a market where sales of such vehicles are expected to grow quickly from a small base.
Automobile manufacturer Tata Motors (NYSE:) EV launches have also been lined up by foreign players like Stellantis and Hyundai Motor.
According to Iyer, the global shortage of semiconductors has lessened for Mercedes, but it still faces some disruption as a result of a lack of parts and delayed shipments, primarily brought on by geopolitical issues, the energy crisis in Europe, and pandemic-related lockdowns all over the world.
He predicted that the situation would return to normal within 12 to 18 months.
($1 = 82.600 Indian rupees)
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